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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2404 Introduced 2/15/2013, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED:
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Amends the Budget Stabilization Act. Provides for transfers from the General Revenue Fund to the Pension Stabilization Fund according to a specified schedule beginning in FY 2016 and continuing until FY 2045 or until the retirement funds have achieved a 100% funding ratio, whichever is earlier. Amends the General Assembly, State Employee, State Universities and Downstate Teacher Articles of the Illinois Pension Code. Changes the manner in which the annual required State contribution is calculated so that the the affected systems are 100% funded by 2045. Provides that employee contributions to the retirement systems are increased an additional 1% on July 1, 2013 and 2% on July 1, 2014. Provides that the State is contractually obligated to each retirement plan participant and retiree to provide funding to the retirement systems according to the specified amortization schedule beginning in FY 2016 and continuing until FY 2045 or until the retirement funds have achieved a 100% funding ratio, whichever is earlier, in addition to the annual required State contribution certified by the Board for each fiscal year. Provides that each retirement system has the right to bring a mandamus action against the State to compel the State to make any installment of the annual required State contribution certified by the Board and the transfers required under the Budget Stabilization Act. Further provides that if a retirement system shall fail to bring a mandamus action against the State to compel the State to make any required installment, then any participant or retiree may bring such a mandamus action. Effective July 1, 2013.
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| | | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Budget Stabilization Act is amended by |
| 5 | | changing Sections 20 and 25 as follows:
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| 6 | | (30 ILCS 122/20) |
| 7 | | Sec. 20. Pension Stabilization Fund. |
| 8 | | (a) The Pension Stabilization Fund is hereby created as a |
| 9 | | special fund in the State treasury. Moneys in the fund shall be |
| 10 | | used for the sole purpose of making payments to the designated |
| 11 | | retirement systems as provided in Section 25.
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| 12 | | (b) For each fiscal year when the General Assembly's
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| 13 | | appropriations and transfers or diversions as required by law
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| 14 | | from general funds do not exceed 99% of the
estimated general |
| 15 | | funds revenues pursuant to subsection (a)
of Section 10, the |
| 16 | | Comptroller shall transfer from the
General Revenue Fund as |
| 17 | | provided by this Section a total
amount equal to 0.5% of the |
| 18 | | estimated general funds revenues
to the Pension Stabilization |
| 19 | | Fund. |
| 20 | | (c) For each fiscal year through Fiscal Year 2013 when the |
| 21 | | General Assembly's
appropriations and transfers or diversions |
| 22 | | as required by law
from general funds do not exceed 98% of the
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| 23 | | estimated general funds revenues pursuant to subsection (b)
of |
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| 1 | | Section 10, the Comptroller shall transfer from the
General |
| 2 | | Revenue Fund as provided by this Section a total
amount equal |
| 3 | | to 1.0% of the estimated general funds revenues
to the Pension |
| 4 | | Stabilization Fund. |
| 5 | | (c-5) In Fiscal Year 2016 and each fiscal year thereafter, |
| 6 | | the State Comptroller shall order transferred and the State |
| 7 | | Treasurer shall transfer the following amounts from the General |
| 8 | | Revenue Fund to the Pension Stabilization Fund: |
| 9 | | in Fiscal Year 2016, $441,429,372; |
| 10 | | in Fiscal Year 2017, $150,545,372; |
| 11 | | in Fiscal Year 2018, $179,267,872; |
| 12 | | in Fiscal Year 2019, $211,777,872; |
| 13 | | in Fiscal Year 2020, $1,123,333,372; |
| 14 | | in Fiscal Year 2021, $1,084,470,872; |
| 15 | | in Fiscal Year 2022, $1,048,083,372; |
| 16 | | in Fiscal Year 2023, $1,014,170,872; |
| 17 | | in Fiscal Year 2024, $957,733,372; |
| 18 | | in Fiscal Year 2025, $905,683,372; |
| 19 | | in Fiscal Year 2026, $882,458,372; |
| 20 | | in Fiscal Year 2027, $861,783,372; |
| 21 | | in Fiscal Year 2028, $818,658,372; |
| 22 | | in Fiscal Year 2029, $779,358,372; |
| 23 | | in Fiscal Year 2030, $718,883,372; |
| 24 | | in Fiscal Year 2031, $663,508,372; |
| 25 | | in Fiscal Year 2032, $638,233,372; |
| 26 | | in Fiscal Year 2033, $641,783,372; |
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| 1 | | in Fiscal Year 2034, $1,797,883,372; |
| 2 | | in Fiscal Year 2035, $1,797,883,372; |
| 3 | | in Fiscal Year 2036, $1,797,883,372; |
| 4 | | in Fiscal Year 2037, $1,797,883,372; |
| 5 | | in Fiscal Year 2038, $1,797,883,372; |
| 6 | | in Fiscal Year 2039, $1,797,883,372; |
| 7 | | in Fiscal Year 2040, $1,797,883,372; |
| 8 | | in Fiscal Year 2041, $1,797,883,372; |
| 9 | | in Fiscal Year 2042, $1,797,883,372; |
| 10 | | in Fiscal Year 2043, $1,797,883,372; |
| 11 | | in Fiscal Year 2044, $1,797,883,372; and |
| 12 | | in Fiscal Year 2045, $1,797,883,372. |
| 13 | | (c-10) The transfers made pursuant to subsection (c-5) of |
| 14 | | this Section shall continue until Fiscal Year 2045 or until |
| 15 | | each of the designated retirement systems, as defined in |
| 16 | | Section 25, has achieved a funding ratio of at least 100%, |
| 17 | | whichever occurs first. |
| 18 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
| 19 | | to be transferred each fiscal year under this Section
into the |
| 20 | | Pension Stabilization Fund on the first day of each
month of |
| 21 | | that fiscal year or as soon thereafter as possible; except that |
| 22 | | the final transfer of the fiscal year shall be made as soon as |
| 23 | | practical after the August 31 following the end of the fiscal |
| 24 | | year. |
| 25 | | Until Fiscal Year 2014, before Before the final transfer |
| 26 | | for a fiscal year is made, the Comptroller shall reconcile the |
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| 1 | | estimated general funds revenues used in calculating the other |
| 2 | | transfers under this Section for that fiscal year with the |
| 3 | | actual general funds revenues for that fiscal year. The
final |
| 4 | | transfer for the fiscal year shall be adjusted so that the
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| 5 | | total amount transferred under this Section for that fiscal |
| 6 | | year is equal to the percentage specified in subsection
(b) or |
| 7 | | (c) of this Section, whichever is applicable, of the actual
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| 8 | | general funds revenues for that fiscal year. The actual general |
| 9 | | funds revenues for the fiscal year shall be calculated in a |
| 10 | | manner consistent with subsection (c) of
Section 10 of this |
| 11 | | Act.
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| 12 | | (Source: P.A. 94-839, eff. 6-6-06.)
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| 13 | | (30 ILCS 122/25)
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| 14 | | Sec. 25. Transfers from the Pension Stabilization Fund. |
| 15 | | (a) As used in this Section, "designated retirement |
| 16 | | systems" means: |
| 17 | | (1) the State Employees' Retirement System of
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| 18 | | Illinois; |
| 19 | | (2) the Teachers' Retirement System of the State of
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| 20 | | Illinois; |
| 21 | | (3) the State Universities Retirement System; |
| 22 | | (4) the Judges Retirement System of Illinois; and |
| 23 | | (5) the General Assembly Retirement System. |
| 24 | | (b) As soon as may be practical after any money is |
| 25 | | deposited into the Pension Stabilization Fund, the State |
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| 1 | | Comptroller shall apportion the deposited amount among the |
| 2 | | designated retirement systems and the State Comptroller and |
| 3 | | State Treasurer shall pay the apportioned amounts to the |
| 4 | | designated retirement systems. The amount deposited shall be |
| 5 | | apportioned among the designated retirement systems in |
| 6 | | proportion to their respective certified State contributions |
| 7 | | for the State fiscal year in which the payment is made to those |
| 8 | | systems in the same proportion as their respective portions of |
| 9 | | the
total actuarial reserve deficiency of the designated |
| 10 | | retirement systems, as most
recently determined by the |
| 11 | | Governor's Office of Management and
Budget. Amounts received by |
| 12 | | a designated retirement system under this Section shall be used |
| 13 | | for funding the unfunded liabilities of the retirement system. |
| 14 | | Payments under this Section are authorized by the continuing |
| 15 | | appropriation under Section 1.7 of the State Pension Funds |
| 16 | | Continuing Appropriation Act. |
| 17 | | (c) At the request of the State Comptroller, the Governor's |
| 18 | | Office of Management and Budget shall
determine the individual |
| 19 | | and total actuarial reserve deficiencies of the
designated |
| 20 | | retirement systems. For this purpose, the
Governor's Office of |
| 21 | | Management and Budget shall consider the
latest available audit |
| 22 | | and actuarial reports of each of the
retirement systems and the |
| 23 | | relevant reports and statistics of
the Public Pension Division |
| 24 | | of the Department of
Financial and Professional Regulation. |
| 25 | | (d) Payments to the designated retirement systems under |
| 26 | | this Section shall be in addition to, and not in lieu of, any |
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| 1 | | State contributions required under Section 2-124, 14-131, |
| 2 | | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
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| 3 | | (Source: P.A. 94-839, eff. 6-6-06.)
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| 4 | | Section 15. The Illinois Pension Code is amended by adding |
| 5 | | Sections 2-105.1, 2-105.2, 14-103.40, 14-103.41, 15-107.1, |
| 6 | | 15-107.2, 16-106.4, 16-106.5, and 16-158.2 and changing |
| 7 | | Sections 1-103.3, 2-124, 2-125, 2-126, 14-131, 14-132, 14-133, |
| 8 | | 15-136, 15-155, 15-156, 15-157, 16-133, 16-152, and 16-158 as |
| 9 | | follows:
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| 10 | | (40 ILCS 5/1-103.3)
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| 11 | | Sec. 1-103.3. Application of 1994 amendment; funding |
| 12 | | standard.
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| 13 | | (a) The provisions of Public Act 88-593 this amendatory Act |
| 14 | | of 1994 that change the method of
calculating, certifying, and |
| 15 | | paying the required State contributions to the
retirement |
| 16 | | systems established under Articles 2, 14, 15, 16, and 18 shall
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| 17 | | first apply to the State contributions required for State |
| 18 | | fiscal year 1996.
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| 19 | | (b) (Blank) The General Assembly declares that a funding |
| 20 | | ratio (the ratio of a
retirement system's total assets to its |
| 21 | | total actuarial liabilities) of 90% is
an appropriate goal for |
| 22 | | State-funded retirement systems in Illinois, and it
finds that |
| 23 | | a funding ratio of 90% is now the generally-recognized norm
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| 24 | | throughout the nation for public employee retirement systems |
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| 1 | | that are
considered to be financially secure and funded in an |
| 2 | | appropriate and
responsible manner.
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| 3 | | (c) Every 5 years, beginning in 1999, the Commission on |
| 4 | | Government Forecasting and Accountability, in consultation |
| 5 | | with the affected retirement systems and the
Governor's Office |
| 6 | | of Management and Budget (formerly
Bureau
of the Budget), shall |
| 7 | | consider and determine whether the funding goals 90% funding |
| 8 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code |
| 9 | | continue subsection (b) continues to represent an appropriate |
| 10 | | funding goals goal for
those State-funded retirement systems in |
| 11 | | Illinois, and it shall report its findings
and recommendations |
| 12 | | on this subject to the Governor and the General Assembly.
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| 13 | | (Source: P.A. 93-1067, eff. 1-15-05.)
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| 14 | | (40 ILCS 5/2-105.1 new) |
| 15 | | Sec. 2-105.1. Tier I participant."Tier I participant": A |
| 16 | | participant who first became a participant before January 1, |
| 17 | | 2011 and who is not a Tier I retiree.
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| 18 | | (40 ILCS 5/2-105.2 new) |
| 19 | | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a |
| 20 | | former Tier I participant who is receiving a retirement |
| 21 | | annuity.
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| 22 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| 23 | | Sec. 2-124. Contributions by State.
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| 1 | | (a) The State shall make contributions to the System by
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| 2 | | appropriations of amounts which, together with the |
| 3 | | contributions of
participants, interest earned on investments, |
| 4 | | and other income
will meet the cost of maintaining and |
| 5 | | administering the System on a 100% 90%
funded basis in |
| 6 | | accordance with actuarial recommendations.
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| 7 | | (b) The Board shall determine the amount of State
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| 8 | | contributions required for each fiscal year on the basis of the
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| 9 | | actuarial tables and other assumptions adopted by the Board and |
| 10 | | the
prescribed rate of interest, using the formula in |
| 11 | | subsection (c).
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| 12 | | (c) For State fiscal years 2015 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 100% |
| 16 | | of the total actuarial liabilities of the System by the end of
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| 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 2012 through 2014 2045, the minimum |
| 23 | | contribution
to the System to be made by the State for each |
| 24 | | fiscal year shall be an amount
determined by the System to be |
| 25 | | sufficient to bring the total assets of the
System up to 90% of |
| 26 | | the total actuarial liabilities of the System by the end of
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| 1 | | State fiscal year 2045. In making these determinations, the |
| 2 | | required State
contribution shall be calculated each year as a |
| 3 | | level percentage of payroll
over the years remaining to and |
| 4 | | including fiscal year 2045 and shall be
determined under the |
| 5 | | projected unit credit actuarial cost method.
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| 6 | | For State fiscal years 1996 through 2005, the State |
| 7 | | contribution to
the System, as a percentage of the applicable |
| 8 | | employee payroll, shall be
increased in equal annual increments |
| 9 | | so that by State fiscal year 2011, the
State is contributing at |
| 10 | | the rate required under this Section.
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| 11 | | Notwithstanding any other provision of this Article, the |
| 12 | | total required State
contribution for State fiscal year 2006 is |
| 13 | | $4,157,000.
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| 14 | | Notwithstanding any other provision of this Article, the |
| 15 | | total required State
contribution for State fiscal year 2007 is |
| 16 | | $5,220,300.
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| 17 | | For each of State fiscal years 2008 through 2009, the State |
| 18 | | contribution to
the System, as a percentage of the applicable |
| 19 | | employee payroll, shall be
increased in equal annual increments |
| 20 | | from the required State contribution for State fiscal year |
| 21 | | 2007, so that by State fiscal year 2011, the
State is |
| 22 | | contributing at the rate otherwise required under this Section.
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| 23 | | Notwithstanding any other provision of this Article, the |
| 24 | | total required State contribution for State fiscal year 2010 is |
| 25 | | $10,454,000 and shall be made from the proceeds of bonds sold |
| 26 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
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| 1 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
| 2 | | expenses determined by the System's share of total bond |
| 3 | | proceeds, (ii) any amounts received from the General Revenue |
| 4 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
| 5 | | proceeds due to the issuance of discounted bonds, if |
| 6 | | applicable. |
| 7 | | Notwithstanding any other provision of this Article, the
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| 8 | | total required State contribution for State fiscal year 2011 is
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| 9 | | the amount recertified by the System on or before April 1, 2011 |
| 10 | | pursuant to Section 2-134 and shall be made from the proceeds |
| 11 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
| 12 | | the General
Obligation Bond Act, less (i) the pro rata share of |
| 13 | | bond sale
expenses determined by the System's share of total |
| 14 | | bond
proceeds, (ii) any amounts received from the General |
| 15 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
| 16 | | bond
proceeds due to the issuance of discounted bonds, if
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| 17 | | applicable. |
| 18 | | Beginning in State fiscal year 2046, the minimum State |
| 19 | | contribution for
each fiscal year shall be the amount needed to |
| 20 | | maintain the total assets of
the System at 100% 90% of the |
| 21 | | total actuarial liabilities of the System.
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| 22 | | Amounts received by the System pursuant to Section 25 of |
| 23 | | the Budget Stabilization Act or Section 8.12 of the State |
| 24 | | Finance Act in any fiscal year do not reduce and do not |
| 25 | | constitute payment of any portion of the minimum State |
| 26 | | contribution required under this Article in that fiscal year. |
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| 1 | | Such amounts shall not reduce, and shall not be included in the |
| 2 | | calculation of, the required State contributions under this |
| 3 | | Article in any future year until the System has reached a |
| 4 | | funding ratio of at least 80% 90%. A reference in this Article |
| 5 | | to the "required State contribution" or any substantially |
| 6 | | similar term does not include or apply to any amounts payable |
| 7 | | to the System under Section 25 of the Budget Stabilization Act.
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| 8 | | Notwithstanding any other provision of this Code or the |
| 9 | | Budget Stabilization Act, amounts transferred to the System |
| 10 | | pursuant to the Budget Stabilization Act after the effective |
| 11 | | date of this amendatory Act of the 98th General Assembly do not |
| 12 | | reduce and do not constitute payment of any portion of the |
| 13 | | required State contribution under this Article in that fiscal |
| 14 | | year. Such amounts shall not reduce, and shall not be included |
| 15 | | in the calculation of, the required State contributions under |
| 16 | | this Article in any future year until the System has received |
| 17 | | payment of contributions pursuant to the Budget Stabilization |
| 18 | | Act. |
| 19 | | Notwithstanding any other provision of this Section, the |
| 20 | | required State
contribution for State fiscal year 2005 and for |
| 21 | | fiscal year 2008 and each fiscal year thereafter through State |
| 22 | | fiscal year 2014, as
calculated under this Section and
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| 23 | | certified under Section 2-134, shall not exceed an amount equal |
| 24 | | to (i) the
amount of the required State contribution that would |
| 25 | | have been calculated under
this Section for that fiscal year if |
| 26 | | the System had not received any payments
under subsection (d) |
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| 1 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) |
| 2 | | the portion of the State's total debt service payments for that |
| 3 | | fiscal
year on the bonds issued in fiscal year 2003 for the |
| 4 | | purposes of that Section 7.2, as determined
and certified by |
| 5 | | the Comptroller, that is the same as the System's portion of
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| 6 | | the total moneys distributed under subsection (d) of Section |
| 7 | | 7.2 of the General
Obligation Bond Act. In determining this |
| 8 | | maximum for State fiscal years 2008 through 2010, however, the |
| 9 | | amount referred to in item (i) shall be increased, as a |
| 10 | | percentage of the applicable employee payroll, in equal |
| 11 | | increments calculated from the sum of the required State |
| 12 | | contribution for State fiscal year 2007 plus the applicable |
| 13 | | portion of the State's total debt service payments for fiscal |
| 14 | | year 2007 on the bonds issued in fiscal year 2003 for the |
| 15 | | purposes of Section 7.2 of the General
Obligation Bond Act, so |
| 16 | | that, by State fiscal year 2011, the
State is contributing at |
| 17 | | the rate otherwise required under this Section.
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| 18 | | (d) 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 | | (e) 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. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
| 8 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
| 9 | | 7-13-12.)
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| 10 | | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
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| 11 | | Sec. 2-125. Obligations of State; funding guarantee. |
| 12 | | (a) The payment of (1) the required State contributions, |
| 13 | | (2) all benefits
granted under this system and (3) all expenses |
| 14 | | of administration and
operation are obligations of the State to |
| 15 | | the extent specified in this
Article.
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| 16 | | (b) All income, interest and dividends derived from |
| 17 | | deposits and investments
shall be credited to the account of |
| 18 | | the system in the State Treasury and
used to pay benefits under |
| 19 | | this Article.
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| 20 | | (c) Pursuant to Article XIII, Section 5 of the 1970 |
| 21 | | Constitution of the State of Illinois, beginning on July 1, |
| 22 | | 2013, the State shall, as a retirement benefit to each |
| 23 | | participant and annuitant of the System be contractually |
| 24 | | obligated to the System (as a fiduciary and trustee of the |
| 25 | | participants and annuitants) to pay the annual required State |
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| 1 | | contribution, as determined by the Board of the System using |
| 2 | | generally accepted actuarial principles, as is necessary to |
| 3 | | bring the total assets of the System up to 100% of the total |
| 4 | | actuarial liabilities of the System by the end of State fiscal |
| 5 | | year 2045. As a further retirement benefit and contractual |
| 6 | | obligation, each fiscal year, the State shall pay to each |
| 7 | | designated retirement system the annual required State |
| 8 | | contribution certified by the Board for that fiscal year. |
| 9 | | Payments of the annual required State contribution for each |
| 10 | | fiscal year shall be made in equal monthly installments. |
| 11 | | Additionally, beginning in fiscal year 2014, State transfers to |
| 12 | | the Pension Stabilization Fund pursuant to Section 20 of the |
| 13 | | Budget Stabilization Act and payments to the System pursuant to |
| 14 | | Section 25 of the Budget Stabilization Act shall be further |
| 15 | | retirement benefits and contractual obligations. The transfers |
| 16 | | and payments prescribed in Sections 20 and 25 of the Budget |
| 17 | | Stabilization Act shall not be used by the retirement system |
| 18 | | when calculation any pension payment until the System has |
| 19 | | reached a funded level of 100%. This Section and the security |
| 20 | | it provides to participants and annuitants is intended to be, |
| 21 | | and is, a contractual right that is part of the pension |
| 22 | | benefits provided to the participants and annuitants. |
| 23 | | Notwithstanding anything to the contrary in the Court of Claims |
| 24 | | Act or any other law, a designated retirement system has the |
| 25 | | exclusive right to and shall bring a mandamus action in the |
| 26 | | Circuit Court of Sangamon County against the State to compel |
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| 1 | | the State to make any installment of the annual required State |
| 2 | | contribution required by this Section, irrespective of other |
| 3 | | remedies that may be available to the System. Each member or |
| 4 | | annuitant of the System has the right to in any judicial |
| 5 | | district in which the System maintains an office if the System |
| 6 | | fails to bring an action specified in this Section, |
| 7 | | irrespective of other remedies that may be available to the |
| 8 | | member or annuitant. In making these determinations, the |
| 9 | | required State contribution shall be calculated each year as a |
| 10 | | level percentage of payroll over the years remaining to and |
| 11 | | including fiscal year 2045 and shall be determined under the |
| 12 | | projected unit credit actuarial cost method. |
| 13 | | (Source: P.A. 83-1440.)
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| 14 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
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| 15 | | Sec. 2-126. Contributions by participants.
|
| 16 | | (a) Each participant shall contribute toward the cost of |
| 17 | | his or her
retirement annuity a percentage of each payment of |
| 18 | | salary received by him or
her for service as a member as |
| 19 | | follows: for service between October 31, 1947
and January 1, |
| 20 | | 1959, 5%; for service between January 1, 1959 and June 30, |
| 21 | | 1969,
6%; for service between July 1, 1969 and January 10, |
| 22 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
| 23 | | service after December 31, 1981, 8 1/2%.
|
| 24 | | (a-5) In addition to the contributions otherwise required |
| 25 | | under this Article, each Tier I participant shall also make the |
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| 1 | | following contributions toward the cost of his or her |
| 2 | | retirement annuity from each payment
of salary received by him |
| 3 | | or her for service as a member: |
| 4 | | (1) beginning July 1, 2013 and through June 30, 2014, |
| 5 | | 1% of salary; and |
| 6 | | (2) beginning on July 1, 2014, 2% of salary. |
| 7 | | (b) Beginning August 2, 1949, each male participant, and |
| 8 | | from July 1,
1971, each female participant shall contribute |
| 9 | | towards the cost of the
survivor's annuity 2% of salary.
|
| 10 | | A participant who has no eligible survivor's annuity |
| 11 | | beneficiary may elect
to cease making contributions for |
| 12 | | survivor's annuity under this subsection.
A survivor's annuity |
| 13 | | shall not be payable upon the death of a person who has
made |
| 14 | | this election, unless prior to that death the election has been |
| 15 | | revoked
and the amount of the contributions that would have |
| 16 | | been paid under this
subsection in the absence of the election |
| 17 | | is paid to the System, together
with interest at the rate of 4% |
| 18 | | per year from the date the contributions
would have been made |
| 19 | | to the date of payment.
|
| 20 | | (c) Beginning July 1, 1967, each participant shall |
| 21 | | contribute 1% of
salary towards the cost of automatic increase |
| 22 | | in annuity provided in
Section 2-119.1. These contributions |
| 23 | | shall be made concurrently with
contributions for retirement |
| 24 | | annuity purposes.
|
| 25 | | (d) In addition, each participant serving as an officer of |
| 26 | | the General
Assembly shall contribute, for the same purposes |
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| 1 | | and at the same rates
as are required of a regular participant, |
| 2 | | on each additional payment
received as an officer. If the |
| 3 | | participant serves as an
officer for at least 2 but less than 4 |
| 4 | | years, he or she shall
contribute an amount equal to the amount |
| 5 | | that would have been contributed
had the participant served as |
| 6 | | an officer for 4 years. Persons who serve
as officers in the |
| 7 | | 87th General Assembly but cannot receive the additional
payment |
| 8 | | to officers because of the ban on increases in salary during |
| 9 | | their
terms may nonetheless make contributions based on those |
| 10 | | additional payments
for the purpose of having the additional |
| 11 | | payments included in their highest
salary for annuity purposes; |
| 12 | | however, persons electing to make these
additional |
| 13 | | contributions must also pay an amount representing the
|
| 14 | | corresponding employer contributions, as calculated by the |
| 15 | | System.
|
| 16 | | (e) Notwithstanding any other provision of this Article, |
| 17 | | the required contribution of a participant who first becomes a |
| 18 | | participant on or after January 1, 2011 shall not exceed the |
| 19 | | contribution that would be due under this Article if that |
| 20 | | participant's highest salary for annuity purposes were |
| 21 | | $106,800, plus any increases in that amount under Section |
| 22 | | 2-108.1. |
| 23 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
| 24 | | (40 ILCS 5/14-103.40 new) |
| 25 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of |
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| 1 | | this System who first became a member or participant before |
| 2 | | January 1, 2011 under any reciprocal retirement system or |
| 3 | | pension fund established under this Code other than a |
| 4 | | retirement system or pension fund established under Article 2, |
| 5 | | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree.
|
| 6 | | (40 ILCS 5/14-103.41 new) |
| 7 | | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former |
| 8 | | Tier I member who is receiving a retirement annuity.
|
| 9 | | (40 ILCS 5/14-131)
|
| 10 | | Sec. 14-131. Contributions by State.
|
| 11 | | (a) The State shall make contributions to the System by |
| 12 | | appropriations of
amounts which, together with other employer |
| 13 | | contributions from trust, federal,
and other funds, employee |
| 14 | | contributions, investment income, and other income,
will be |
| 15 | | sufficient to meet the cost of maintaining and administering |
| 16 | | the System
on a 100% 90% funded basis in accordance with |
| 17 | | actuarial recommendations.
|
| 18 | | For the purposes of this Section and Section 14-135.08, |
| 19 | | references to State
contributions refer only to employer |
| 20 | | contributions and do not include employee
contributions that |
| 21 | | are picked up or otherwise paid by the State or a
department on |
| 22 | | behalf of the employee.
|
| 23 | | (b) The Board shall determine the total amount of State |
| 24 | | contributions
required for each fiscal year on the basis of the |
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| 1 | | actuarial tables and other
assumptions adopted by the Board, |
| 2 | | using the formula in subsection (e).
|
| 3 | | The Board shall also determine a State contribution rate |
| 4 | | for each fiscal
year, expressed as a percentage of payroll, |
| 5 | | based on the total required State
contribution for that fiscal |
| 6 | | year (less the amount received by the System from
|
| 7 | | appropriations under Section 8.12 of the State Finance Act and |
| 8 | | Section 1 of the
State Pension Funds Continuing Appropriation |
| 9 | | Act, if any, for the fiscal year
ending on the June 30 |
| 10 | | immediately preceding the applicable November 15
certification |
| 11 | | deadline), the estimated payroll (including all forms of
|
| 12 | | compensation) for personal services rendered by eligible |
| 13 | | employees, and the
recommendations of the actuary.
|
| 14 | | For the purposes of this Section and Section 14.1 of the |
| 15 | | State Finance Act,
the term "eligible employees" includes |
| 16 | | employees who participate in the System,
persons who may elect |
| 17 | | to participate in the System but have not so elected,
persons |
| 18 | | who are serving a qualifying period that is required for |
| 19 | | participation,
and annuitants employed by a department as |
| 20 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
| 21 | | (c) Contributions shall be made by the several departments |
| 22 | | for each pay
period by warrants drawn by the State Comptroller |
| 23 | | against their respective
funds or appropriations based upon |
| 24 | | vouchers stating the amount to be so
contributed. These amounts |
| 25 | | shall be based on the full rate certified by the
Board under |
| 26 | | Section 14-135.08 for that fiscal year.
From the effective date |
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| 1 | | of this amendatory Act of the 93rd General
Assembly through the |
| 2 | | payment of the final payroll from fiscal year 2004
|
| 3 | | appropriations, the several departments shall not make |
| 4 | | contributions
for the remainder of fiscal year 2004 but shall |
| 5 | | instead make payments
as required under subsection (a-1) of |
| 6 | | Section 14.1 of the State Finance Act.
The several departments |
| 7 | | shall resume those contributions at the commencement of
fiscal |
| 8 | | year 2005.
|
| 9 | | (c-1) Notwithstanding subsection (c) of this Section, for |
| 10 | | fiscal years 2010, 2012, and 2013 only, contributions by the |
| 11 | | several departments are not required to be made for General |
| 12 | | Revenue Funds payrolls processed by the Comptroller. Payrolls |
| 13 | | paid by the several departments from all other State funds must |
| 14 | | continue to be processed pursuant to subsection (c) of this |
| 15 | | Section. |
| 16 | | (c-2) For State fiscal years 2010, 2012, and 2013 only, on |
| 17 | | or as soon as possible after the 15th day of each month, the |
| 18 | | Board shall submit vouchers for payment of State contributions |
| 19 | | to the System, in a total monthly amount of one-twelfth of the |
| 20 | | fiscal year General Revenue Fund contribution as certified by |
| 21 | | the System pursuant to Section 14-135.08 of the Illinois |
| 22 | | Pension Code. |
| 23 | | (d) If an employee is paid from trust funds or federal |
| 24 | | funds, the
department or other employer shall pay employer |
| 25 | | contributions from those funds
to the System at the certified |
| 26 | | rate, unless the terms of the trust or the
federal-State |
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| 1 | | agreement preclude the use of the funds for that purpose, in
|
| 2 | | which case the required employer contributions shall be paid by |
| 3 | | the State.
From the effective date of this amendatory
Act of |
| 4 | | the 93rd General Assembly through the payment of the final
|
| 5 | | payroll from fiscal year 2004 appropriations, the department or |
| 6 | | other
employer shall not pay contributions for the remainder of |
| 7 | | fiscal year
2004 but shall instead make payments as required |
| 8 | | under subsection (a-1) of
Section 14.1 of the State Finance |
| 9 | | Act. The department or other employer shall
resume payment of
|
| 10 | | contributions at the commencement of fiscal year 2005.
|
| 11 | | (e) For State fiscal years 2015 through 2045, the minimum |
| 12 | | contribution
to the System to be made by the State for each |
| 13 | | fiscal year shall be an amount
determined by the System to be |
| 14 | | sufficient to bring the total assets of the
System up to 100% |
| 15 | | of the total actuarial liabilities of the System by the end of
|
| 16 | | State fiscal year 2045. In making these determinations, the |
| 17 | | required State
contribution shall be calculated each year as a |
| 18 | | level percentage of payroll
over the years remaining to and |
| 19 | | including fiscal year 2045 and shall be
determined under the |
| 20 | | projected unit credit actuarial cost method. |
| 21 | | For State fiscal years 2012 through 2014 2045, the minimum |
| 22 | | contribution
to the System to be made by the State for each |
| 23 | | fiscal year shall be an amount
determined by the System to be |
| 24 | | sufficient to bring the total assets of the
System up to 90% of |
| 25 | | the total actuarial liabilities of the System by the end
of |
| 26 | | State fiscal year 2045. In making these determinations, the |
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| 1 | | required State
contribution shall be calculated each year as a |
| 2 | | level percentage of payroll
over the years remaining to and |
| 3 | | including fiscal year 2045 and shall be
determined under the |
| 4 | | projected unit credit actuarial cost method.
|
| 5 | | For State fiscal years 1996 through 2005, the State |
| 6 | | contribution to
the System, as a percentage of the applicable |
| 7 | | employee payroll, shall be
increased in equal annual increments |
| 8 | | so that by State fiscal year 2011, the
State is contributing at |
| 9 | | the rate required under this Section; except that
(i) for State |
| 10 | | fiscal year 1998, for all purposes of this Code and any other
|
| 11 | | law of this State, the certified percentage of the applicable |
| 12 | | employee payroll
shall be 5.052% for employees earning eligible |
| 13 | | creditable service under Section
14-110 and 6.500% for all |
| 14 | | other employees, notwithstanding any contrary
certification |
| 15 | | made under Section 14-135.08 before the effective date of this
|
| 16 | | amendatory Act of 1997, and (ii)
in the following specified |
| 17 | | State fiscal years, the State contribution to
the System shall |
| 18 | | not be less than the following indicated percentages of the
|
| 19 | | applicable employee payroll, even if the indicated percentage |
| 20 | | will produce a
State contribution in excess of the amount |
| 21 | | otherwise required under this
subsection and subsection (a):
|
| 22 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
| 23 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
| 24 | | Notwithstanding any other provision of this Article, the |
| 25 | | total required State
contribution to the System for State |
| 26 | | fiscal year 2006 is $203,783,900.
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| 1 | | Notwithstanding any other provision of this Article, the |
| 2 | | total required State
contribution to the System for State |
| 3 | | fiscal year 2007 is $344,164,400.
|
| 4 | | For each of State fiscal years 2008 through 2009, the State |
| 5 | | contribution to
the System, as a percentage of the applicable |
| 6 | | employee payroll, shall be
increased in equal annual increments |
| 7 | | from the required State contribution for State fiscal year |
| 8 | | 2007, so that by State fiscal year 2011, the
State is |
| 9 | | contributing at the rate otherwise required under this Section.
|
| 10 | | Notwithstanding any other provision of this Article, the |
| 11 | | total required State General Revenue Fund contribution for |
| 12 | | State fiscal year 2010 is $723,703,100 and shall be made from |
| 13 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
| 14 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
| 15 | | pro rata share of bond sale expenses determined by the System's |
| 16 | | share of total bond proceeds, (ii) any amounts received from |
| 17 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
| 18 | | reduction in bond proceeds due to the issuance of discounted |
| 19 | | bonds, if applicable. |
| 20 | | Notwithstanding any other provision of this Article, the
|
| 21 | | total required State General Revenue Fund contribution for
|
| 22 | | State fiscal year 2011 is the amount recertified by the System |
| 23 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
| 24 | | shall be made from
the proceeds of bonds sold in fiscal year |
| 25 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
| 26 | | Act, less (i) the
pro rata share of bond sale expenses |
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| 1 | | determined by the System's
share of total bond proceeds, (ii) |
| 2 | | any amounts received from
the General Revenue Fund in fiscal |
| 3 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
| 4 | | issuance of discounted
bonds, if applicable. |
| 5 | | Beginning in State fiscal year 2046, the minimum State |
| 6 | | contribution for
each fiscal year shall be the amount needed to |
| 7 | | maintain the total assets of
the System at 90% of the total |
| 8 | | actuarial liabilities of the System.
|
| 9 | | Amounts received by the System pursuant to Section 25 of |
| 10 | | the Budget Stabilization Act or Section 8.12 of the State |
| 11 | | Finance Act in any fiscal year do not reduce and do not |
| 12 | | constitute payment of any portion of the minimum State |
| 13 | | contribution required under this Article in that fiscal year. |
| 14 | | Such amounts shall not reduce, and shall not be included in the |
| 15 | | calculation of, the required State contributions under this |
| 16 | | Article in any future year until the System has reached a |
| 17 | | funding ratio of at least 100% 90%. A reference in this Article |
| 18 | | to the "required State contribution" or any substantially |
| 19 | | similar term does not include or apply to any amounts payable |
| 20 | | to the System under Section 25 of the Budget Stabilization Act.
|
| 21 | | Notwithstanding any other provision of this Code or the |
| 22 | | Budget Stabilization Act, amounts transferred to the System |
| 23 | | pursuant to the Budget Stabilization Act after the effective |
| 24 | | date of this amendatory Act of the 98th General Assembly do not |
| 25 | | reduce and do not constitute payment of any portion of the |
| 26 | | required State contribution under this Article in that fiscal |
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| 1 | | year. Such amounts shall not reduce, and shall not be included |
| 2 | | in the calculation of, the required State contributions under |
| 3 | | this Article in any future year until the System has received |
| 4 | | payment of contributions pursuant to the Budget Stabilization |
| 5 | | 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 through State |
| 9 | | fiscal year 2014, as
calculated under this Section and
|
| 10 | | certified under Section 14-135.08, shall not exceed an amount |
| 11 | | equal to (i) the
amount of the required State contribution that |
| 12 | | would have been calculated under
this Section for that fiscal |
| 13 | | year if the System had not received any payments
under |
| 14 | | subsection (d) of Section 7.2 of the General Obligation Bond |
| 15 | | Act, minus
(ii) the portion of the State's total debt service |
| 16 | | payments for that fiscal
year on the bonds issued in fiscal |
| 17 | | year 2003 for the purposes of that Section 7.2, as determined
|
| 18 | | and certified by the Comptroller, that is the same as the |
| 19 | | System's portion of
the total moneys distributed under |
| 20 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
| 21 | | Act. In determining this maximum for State fiscal years 2008 |
| 22 | | through 2010, however, the amount referred to in item (i) shall |
| 23 | | be increased, as a percentage of the applicable employee |
| 24 | | payroll, in equal increments calculated from the sum of the |
| 25 | | required State contribution for State fiscal year 2007 plus the |
| 26 | | applicable portion of the State's total debt service payments |
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| 1 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
| 2 | | for the purposes of Section 7.2 of the General
Obligation Bond |
| 3 | | Act, so that, by State fiscal year 2011, the
State is |
| 4 | | contributing at the rate otherwise required under this Section.
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| 5 | | (f) After the submission of all payments for eligible |
| 6 | | employees
from personal services line items in fiscal year 2004 |
| 7 | | have been made,
the Comptroller shall provide to the System a |
| 8 | | certification of the sum
of all fiscal year 2004 expenditures |
| 9 | | for personal services that would
have been covered by payments |
| 10 | | to the System under this Section if the
provisions of this |
| 11 | | amendatory Act of the 93rd General Assembly had not been
|
| 12 | | enacted. Upon
receipt of the certification, the System shall |
| 13 | | determine the amount
due to the System based on the full rate |
| 14 | | certified by the Board under
Section 14-135.08 for fiscal year |
| 15 | | 2004 in order to meet the State's
obligation under this |
| 16 | | Section. The System shall compare this amount
due to the amount |
| 17 | | received by the System in fiscal year 2004 through
payments |
| 18 | | under this Section and under Section 6z-61 of the State Finance |
| 19 | | Act.
If the amount
due is more than the amount received, the |
| 20 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
| 21 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
| 22 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
| 23 | | Continuing Appropriation Act. If the amount due is less than |
| 24 | | the
amount received, the
difference shall be termed the "Fiscal |
| 25 | | Year 2004 Overpayment" for purposes of
this Section, and the |
| 26 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
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| 1 | | the Pension Contribution Fund as soon as practicable
after the |
| 2 | | certification.
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| 3 | | (g) For purposes of determining the required State |
| 4 | | contribution to the System, the value of the System's assets |
| 5 | | shall be equal to the actuarial value of the System's assets, |
| 6 | | which shall be calculated as follows: |
| 7 | | As of June 30, 2008, the actuarial value of the System's |
| 8 | | assets shall be equal to the market value of the assets as of |
| 9 | | that date. In determining the actuarial value of the System's |
| 10 | | assets for fiscal years after June 30, 2008, any actuarial |
| 11 | | gains or losses from investment return incurred in a fiscal |
| 12 | | year shall be recognized in equal annual amounts over the |
| 13 | | 5-year period following that fiscal year. |
| 14 | | (h) For purposes of determining the required State |
| 15 | | contribution to the System for a particular year, the actuarial |
| 16 | | value of assets shall be assumed to earn a rate of return equal |
| 17 | | to the System's actuarially assumed rate of return. |
| 18 | | (i) After the submission of all payments for eligible |
| 19 | | employees from personal services line items paid from the |
| 20 | | General Revenue Fund in fiscal year 2010 have been made, the |
| 21 | | Comptroller shall provide to the System a certification of the |
| 22 | | sum of all fiscal year 2010 expenditures for personal services |
| 23 | | that would have been covered by payments to the System under |
| 24 | | this Section if the provisions of this amendatory Act of the |
| 25 | | 96th General Assembly had not been enacted. Upon receipt of the |
| 26 | | certification, the System shall determine the amount due to the |
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| 1 | | System based on the full rate certified by the Board under |
| 2 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
| 3 | | State's obligation under this Section. The System shall compare |
| 4 | | this amount due to the amount received by the System in fiscal |
| 5 | | year 2010 through payments under this Section. If the amount |
| 6 | | due is more than the amount received, the difference shall be |
| 7 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
| 8 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
| 9 | | under Section 1.2 of the State Pension Funds Continuing |
| 10 | | Appropriation Act. If the amount due is less than the amount |
| 11 | | received, the difference shall be termed the "Fiscal Year 2010 |
| 12 | | Overpayment" for purposes of this Section, and the Fiscal Year |
| 13 | | 2010 Overpayment shall be repaid by the System to the General |
| 14 | | Revenue Fund as soon as practicable after the certification. |
| 15 | | (j) After the submission of all payments for eligible |
| 16 | | employees from personal services line items paid from the |
| 17 | | General Revenue Fund in fiscal year 2011 have been made, the |
| 18 | | Comptroller shall provide to the System a certification of the |
| 19 | | sum of all fiscal year 2011 expenditures for personal services |
| 20 | | that would have been covered by payments to the System under |
| 21 | | this Section if the provisions of this amendatory Act of the |
| 22 | | 96th General Assembly had not been enacted. Upon receipt of the |
| 23 | | certification, the System shall determine the amount due to the |
| 24 | | System based on the full rate certified by the Board under |
| 25 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
| 26 | | State's obligation under this Section. The System shall compare |
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| 1 | | this amount due to the amount received by the System in fiscal |
| 2 | | year 2011 through payments under this Section. If the amount |
| 3 | | due is more than the amount received, the difference shall be |
| 4 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
| 5 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
| 6 | | under Section 1.2 of the State Pension Funds Continuing |
| 7 | | Appropriation Act. If the amount due is less than the amount |
| 8 | | received, the difference shall be termed the "Fiscal Year 2011 |
| 9 | | Overpayment" for purposes of this Section, and the Fiscal Year |
| 10 | | 2011 Overpayment shall be repaid by the System to the General |
| 11 | | Revenue Fund as soon as practicable after the certification. |
| 12 | | (k) For fiscal years 2012 and 2013 only, after the |
| 13 | | submission of all payments for eligible employees from personal |
| 14 | | services line items paid from the General Revenue Fund in the |
| 15 | | fiscal year have been made, the Comptroller shall provide to |
| 16 | | the System a certification of the sum of all expenditures in |
| 17 | | the fiscal year for personal services. Upon receipt of the |
| 18 | | certification, the System shall determine the amount due to the |
| 19 | | System based on the full rate certified by the Board under |
| 20 | | Section 14-135.08 for the fiscal year in order to meet the |
| 21 | | State's obligation under this Section. The System shall compare |
| 22 | | this amount due to the amount received by the System for the |
| 23 | | fiscal year. If the amount due is more than the amount |
| 24 | | received, the difference shall be termed the "Prior Fiscal Year |
| 25 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
| 26 | | Year Shortfall shall be satisfied under Section 1.2 of the |
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| 1 | | State Pension Funds Continuing Appropriation Act. If the amount |
| 2 | | due is less than the amount received, the difference shall be |
| 3 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
| 4 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
| 5 | | by the System to the General Revenue Fund as soon as |
| 6 | | practicable after the certification. |
| 7 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; |
| 8 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. |
| 9 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, |
| 10 | | eff. 6-30-12.)
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| 11 | | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
|
| 12 | | Sec. 14-132. Obligations of State; funding guarantee. |
| 13 | | (a) The payment of the required department
contributions, |
| 14 | | all allowances,
annuities, benefits granted under this |
| 15 | | Article, and all expenses of
administration of the system are |
| 16 | | obligations of the State of Illinois to
the extent specified in |
| 17 | | this Article.
|
| 18 | | (b) All income of the system
shall be credited to a |
| 19 | | separate account for this system in the State
treasury and |
| 20 | | shall be used to pay allowances, annuities, benefits and
|
| 21 | | administration expense.
|
| 22 | | (c) Pursuant to Article XIII, Section 5 of the 1970 |
| 23 | | Constitution of the State of Illinois, beginning on July 1, |
| 24 | | 2013, the State shall, as a retirement benefit to each |
| 25 | | participant and annuitant of the System be contractually |
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| 1 | | obligated to the System (as a fiduciary and trustee of the |
| 2 | | participants and annuitants) to pay the annual required State |
| 3 | | contribution, as determined by the Board of the System using |
| 4 | | generally accepted actuarial principles, as is necessary to |
| 5 | | bring the total assets of the System up to 100% of the total |
| 6 | | actuarial liabilities of the System by the end of State fiscal |
| 7 | | year 2045. As a further retirement benefit and contractual |
| 8 | | obligation, each fiscal year, the State shall pay to each |
| 9 | | designated retirement system the annual required State |
| 10 | | contribution certified by the Board for that fiscal year. |
| 11 | | Payments of the annual required State contribution for each |
| 12 | | fiscal year shall be made in equal monthly installments. |
| 13 | | Additionally, beginning in fiscal year 2014, State transfers to |
| 14 | | the Pension Stabilization Fund pursuant to Section 20 of the |
| 15 | | Budget Stabilization Act and payments to the System pursuant to |
| 16 | | Section 25 of the Budget Stabilization Act shall be further |
| 17 | | retirement benefits and contractual obligations. The transfers |
| 18 | | and payments prescribed in Sections 20 and 25 of the Budget |
| 19 | | Stabilization Act shall not be used by the retirement system |
| 20 | | when calculation any pension payment until the System has |
| 21 | | reached a funded level of 100%. This Section and the security |
| 22 | | it provides to participants and annuitants is intended to be, |
| 23 | | and is, a contractual right that is part of the pension |
| 24 | | benefits provided to the participants and annuitants. |
| 25 | | Notwithstanding anything to the contrary in the Court of Claims |
| 26 | | Act or any other law, a designated retirement system has the |
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| 1 | | exclusive right to and shall bring a mandamus action in the |
| 2 | | Circuit Court of Sangamon County against the State to compel |
| 3 | | the State to make any installment of the annual required State |
| 4 | | contribution required by this Section, irrespective of other |
| 5 | | remedies that may be available to the System. Each member or |
| 6 | | annuitant of the System has the right to in any judicial |
| 7 | | district in which the System maintains an office if the System |
| 8 | | fails to bring an action specified in this Section, |
| 9 | | irrespective of other remedies that may be available to the |
| 10 | | member or annuitant. In making these determinations, the |
| 11 | | required State contribution shall be calculated each year as a |
| 12 | | level percentage of payroll over the years remaining to and |
| 13 | | including fiscal year 2045 and shall be determined under the |
| 14 | | projected unit credit actuarial cost method. |
| 15 | | (Source: P.A. 80-841.)
|
| 16 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
| 17 | | Sec. 14-133. Contributions on behalf of members.
|
| 18 | | (a) Each participating employee shall make contributions |
| 19 | | to the System,
based on the employee's compensation, as |
| 20 | | follows:
|
| 21 | | (1) Covered employees, except as indicated below, 3.5% |
| 22 | | for
retirement annuity, and 0.5% for a widow or survivors
|
| 23 | | annuity;
|
| 24 | | (2) Noncovered employees, except as indicated below, |
| 25 | | 7% for retirement
annuity and 1% for a widow or survivors |
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| 1 | | annuity;
|
| 2 | | (3) Noncovered employees serving in a position in which |
| 3 | | "eligible
creditable service" as defined in Section 14-110 |
| 4 | | may be earned, 1% for a widow
or survivors annuity
plus the |
| 5 | | following amount for retirement annuity: 8.5% through |
| 6 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
| 7 | | in 2004 and thereafter;
|
| 8 | | (4) Covered employees serving in a position in which |
| 9 | | "eligible creditable
service" as defined in Section 14-110 |
| 10 | | may be earned, 0.5% for a widow or survivors annuity
plus |
| 11 | | the following amount for retirement annuity: 5% through |
| 12 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
| 13 | | and thereafter;
|
| 14 | | (5) Each security employee of the Department of |
| 15 | | Corrections
or of the Department of Human Services who is a |
| 16 | | covered employee, 0.5% for a widow or survivors annuity
|
| 17 | | plus the following amount for retirement annuity: 5% |
| 18 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
| 19 | | in 2004 and thereafter;
|
| 20 | | (6) Each security employee of the Department of |
| 21 | | Corrections
or of the Department of Human Services who is |
| 22 | | not a covered employee, 1% for a widow or survivors annuity
|
| 23 | | plus the following amount for retirement annuity: 8.5% |
| 24 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
| 25 | | 11.5% in 2004 and thereafter.
|
| 26 | | (a-5) In addition to the contributions otherwise required |
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| 1 | | under this Article, each Tier I participant shall also make the |
| 2 | | following contributions toward the cost of his or her |
| 3 | | retirement annuity from each payment
of salary received by him |
| 4 | | or her for service as a member: |
| 5 | | (1) beginning July 1, 2013 and through June 30, 2014, |
| 6 | | 1% of compensation; and |
| 7 | | (2) beginning on July 1, 2014, 2% of compensation. |
| 8 | | (b) Contributions shall be in the form of a deduction from
|
| 9 | | compensation and shall be made notwithstanding that the |
| 10 | | compensation
paid in cash to the employee shall be reduced |
| 11 | | thereby below the minimum
prescribed by law or regulation. Each |
| 12 | | member is deemed to consent and
agree to the deductions from |
| 13 | | compensation provided for in this Article,
and shall receipt in |
| 14 | | full for salary or compensation.
|
| 15 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
| 16 | | (40 ILCS 5/15-107.1 new) |
| 17 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
| 18 | | participant under this Article, other than a participant in the |
| 19 | | self-managed plan under Section 15-158.2, who first became a |
| 20 | | member or participant before January 1, 2011 under any |
| 21 | | reciprocal retirement system or pension fund established under |
| 22 | | this Code other than a retirement system or pension fund |
| 23 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code and |
| 24 | | who is not a Tier I retiree.
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| 1 | | (40 ILCS 5/15-107.2 new) |
| 2 | | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former |
| 3 | | Tier I participant who is receiving a retirement annuity.
|
| 4 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
| 5 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
| 6 | | of this
Section 15-136 apply only to those participants who are |
| 7 | | participating in the
traditional benefit package or the |
| 8 | | portable benefit package and do not
apply to participants who |
| 9 | | are participating in the self-managed plan.
|
| 10 | | (a) The amount of a participant's retirement annuity, |
| 11 | | expressed in the form
of a single-life annuity, shall be |
| 12 | | determined by whichever of the following
rules is applicable |
| 13 | | and provides the largest annuity:
|
| 14 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
| 15 | | of earnings for
each of the first 10 years of service, 1.90% |
| 16 | | for each of the next 10 years of
service, 2.10% for each year |
| 17 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
| 18 | | each year in excess of 30; or for persons who retire on or
|
| 19 | | after January 1, 1998, 2.2% of the final rate of earnings for |
| 20 | | each year of
service.
|
| 21 | | Rule 2: The retirement annuity shall be the sum of the |
| 22 | | following,
determined from amounts credited to the participant |
| 23 | | in accordance with the
actuarial tables and the effective rate |
| 24 | | of interest in effect at the
time the retirement annuity |
| 25 | | begins:
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| 1 | | (i) the normal annuity which can be provided on an |
| 2 | | actuarially
equivalent basis, by the accumulated normal |
| 3 | | contributions as of
the date the annuity begins;
|
| 4 | | (ii) an annuity from employer contributions of an |
| 5 | | amount equal to that
which can be provided on an |
| 6 | | actuarially equivalent basis from the accumulated
normal |
| 7 | | contributions made by the participant under Section |
| 8 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
| 9 | | accumulated normal contributions made by
the participant; |
| 10 | | and
|
| 11 | | (iii) the annuity that can be provided on an |
| 12 | | actuarially equivalent basis
from the entire contribution |
| 13 | | made by the participant under Section 15-113.3.
|
| 14 | | For the purpose of calculating an annuity under this Rule |
| 15 | | 2, the contribution required under subsection (c-5) of Section |
| 16 | | 15-157 shall not be considered when determining the |
| 17 | | participant's accumulated normal contributions under clause |
| 18 | | (i) or the employer contribution under clause (ii). |
| 19 | | With respect to a police officer or firefighter who retires |
| 20 | | on or after
August 14, 1998, the accumulated normal |
| 21 | | contributions taken into account under
clauses (i) and (ii) of |
| 22 | | this Rule 2 shall include the additional normal
contributions |
| 23 | | made by the police officer or firefighter under Section
|
| 24 | | 15-157(a).
|
| 25 | | The amount of a retirement annuity calculated under this |
| 26 | | Rule 2 shall
be computed solely on the basis of the |
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| 1 | | participant's accumulated normal
contributions, as specified |
| 2 | | in this Rule and defined in Section 15-116.
Neither an employee |
| 3 | | or employer contribution for early retirement under
Section |
| 4 | | 15-136.2 nor any other employer contribution shall be used in |
| 5 | | the
calculation of the amount of a retirement annuity under |
| 6 | | this Rule 2.
|
| 7 | | This amendatory Act of the 91st General Assembly is a |
| 8 | | clarification of
existing law and applies to every participant |
| 9 | | and annuitant without regard to
whether status as an employee |
| 10 | | terminates before the effective date of this
amendatory Act.
|
| 11 | | This Rule 2 does not apply to a person who first becomes an |
| 12 | | employee under this Article on or after July 1, 2005.
|
| 13 | | Rule 3: The retirement annuity of a participant who is |
| 14 | | employed
at least one-half time during the period on which his |
| 15 | | or her final rate of
earnings is based, shall be equal to the |
| 16 | | participant's years of service
not to exceed 30, multiplied by |
| 17 | | (1) $96 if the participant's final rate
of earnings is less |
| 18 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
| 19 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
| 20 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
| 21 | | the final rate
of earnings is at least $5,500 but less than |
| 22 | | $6,500, (5)
$144 if the final rate of earnings is at least |
| 23 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
| 24 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
| 25 | | the final rate of earnings is at least $8,500 but
less than |
| 26 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
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| 1 | | more, except that the annuity for those persons having made an |
| 2 | | election under
Section 15-154(a-1) shall be calculated and |
| 3 | | payable under the portable
retirement benefit program pursuant |
| 4 | | to the provisions of Section 15-136.4.
|
| 5 | | Rule 4: A participant who is at least age 50 and has 25 or |
| 6 | | more years of
service as a police officer or firefighter, and a |
| 7 | | participant who is age 55 or
over and has at least 20 but less |
| 8 | | than 25 years of service as a police officer
or firefighter, |
| 9 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
| 10 | | final rate of earnings for each of the first 10 years of |
| 11 | | service as a police
officer or firefighter, 2 1/2% for each of |
| 12 | | the next 10 years of service as a
police officer or |
| 13 | | firefighter, and 2 3/4% for each year of service as a police
|
| 14 | | officer or firefighter in excess of 20. The retirement annuity |
| 15 | | for all other
service shall be computed under Rule 1.
|
| 16 | | For purposes of this Rule 4, a participant's service as a |
| 17 | | firefighter
shall also include the following:
|
| 18 | | (i) service that is performed while the person is an |
| 19 | | employee under
subsection (h) of Section 15-107; and
|
| 20 | | (ii) in the case of an individual who was a |
| 21 | | participating employee
employed in the fire department of |
| 22 | | the University of Illinois's
Champaign-Urbana campus |
| 23 | | immediately prior to the elimination of that fire
|
| 24 | | department and who immediately after the elimination of |
| 25 | | that fire department
transferred to another job with the |
| 26 | | University of Illinois, service performed
as an employee of |
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| 1 | | the University of Illinois in a position other than police
|
| 2 | | officer or firefighter, from the date of that transfer |
| 3 | | until the employee's
next termination of service with the |
| 4 | | University of Illinois.
|
| 5 | | Rule 5: The retirement annuity of a participant who elected |
| 6 | | early
retirement under the provisions of Section 15-136.2 and |
| 7 | | who, on or before
February 16, 1995, brought administrative |
| 8 | | proceedings pursuant to the
administrative rules adopted by the |
| 9 | | System to challenge the calculation of his
or her retirement |
| 10 | | annuity shall be the sum of the following, determined from
|
| 11 | | amounts credited to the participant in accordance with the |
| 12 | | actuarial tables and
the prescribed rate of interest in effect |
| 13 | | at the time the retirement annuity
begins:
|
| 14 | | (i) the normal annuity which can be provided on an |
| 15 | | actuarially equivalent
basis, by the accumulated normal |
| 16 | | contributions as of the date the annuity
begins; and
|
| 17 | | (ii) an annuity from employer contributions of an |
| 18 | | amount equal to that
which can be provided on an |
| 19 | | actuarially equivalent basis from the accumulated
normal |
| 20 | | contributions made by the participant under Section |
| 21 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
| 22 | | accumulated normal contributions made by the
participant; |
| 23 | | and
|
| 24 | | (iii) an annuity which can be provided on an |
| 25 | | actuarially equivalent basis
from the employee |
| 26 | | contribution for early retirement under Section 15-136.2, |
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| 1 | | and
an annuity from employer contributions of an amount |
| 2 | | equal to that which can be
provided on an actuarially |
| 3 | | equivalent basis from the employee contribution for
early |
| 4 | | retirement under Section 15-136.2.
|
| 5 | | In no event shall a retirement annuity under this Rule 5 be |
| 6 | | lower than the
amount obtained by adding (1) the monthly amount |
| 7 | | obtained by dividing the
combined employee and employer |
| 8 | | contributions made under Section 15-136.2 by the
System's |
| 9 | | annuity factor for the age of the participant at the beginning |
| 10 | | of the
annuity payment period and (2) the amount equal to the |
| 11 | | participant's annuity if
calculated under Rule 1, reduced under |
| 12 | | Section 15-136(b) as if no
contributions had been made under |
| 13 | | Section 15-136.2.
|
| 14 | | With respect to a participant who is qualified for a |
| 15 | | retirement annuity under
this Rule 5 whose retirement annuity |
| 16 | | began before the effective date of this
amendatory Act of the |
| 17 | | 91st General Assembly, and for whom an employee
contribution |
| 18 | | was made under Section 15-136.2, the System shall recalculate |
| 19 | | the
retirement annuity under this Rule 5 and shall pay any |
| 20 | | additional amounts due
in the manner provided in Section |
| 21 | | 15-186.1 for benefits mistakenly set too low.
|
| 22 | | The amount of a retirement annuity calculated under this |
| 23 | | Rule 5 shall be
computed solely on the basis of those |
| 24 | | contributions specifically set forth in
this Rule 5. Except as |
| 25 | | provided in clause (iii) of this Rule 5, neither an
employee |
| 26 | | nor employer contribution for early retirement under Section |
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| 1 | | 15-136.2,
nor any other employer contribution, shall be used in |
| 2 | | the calculation of the
amount of a retirement annuity under |
| 3 | | this Rule 5.
|
| 4 | | The General Assembly has adopted the changes set forth in |
| 5 | | Section 25 of this
amendatory Act of the 91st General Assembly |
| 6 | | in recognition that the decision of
the Appellate Court for the |
| 7 | | Fourth District in Mattis v. State Universities
Retirement |
| 8 | | System et al. might be deemed to give some right to the |
| 9 | | plaintiff in
that case. The changes made by Section 25 of this |
| 10 | | amendatory Act of the 91st
General Assembly are a legislative |
| 11 | | implementation of the decision of the
Appellate Court for the |
| 12 | | Fourth District in Mattis v. State Universities
Retirement |
| 13 | | System et al. with respect to that plaintiff.
|
| 14 | | The changes made by Section 25 of this amendatory Act of |
| 15 | | the 91st General
Assembly apply without regard to whether the |
| 16 | | person is in service as an
employee on or after its effective |
| 17 | | date.
|
| 18 | | (b) The retirement annuity provided under Rules 1 and 3 |
| 19 | | above shall be
reduced by 1/2 of 1% for each month the |
| 20 | | participant is under age 60 at the
time of retirement. However, |
| 21 | | this reduction shall not apply in the following
cases:
|
| 22 | | (1) For a disabled participant whose disability |
| 23 | | benefits have been
discontinued because he or she has |
| 24 | | exhausted eligibility for disability
benefits under clause |
| 25 | | (6) of Section 15-152;
|
| 26 | | (2) For a participant who has at least the number of |
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| 1 | | years of service
required to retire at any age under |
| 2 | | subsection (a) of Section 15-135; or
|
| 3 | | (3) For that portion of a retirement annuity which has |
| 4 | | been provided on
account of service of the participant |
| 5 | | during periods when he or she performed
the duties of a |
| 6 | | police officer or firefighter, if these duties were |
| 7 | | performed
for at least 5 years immediately preceding the |
| 8 | | date the retirement annuity
is to begin.
|
| 9 | | (c) The maximum retirement annuity provided under Rules 1, |
| 10 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
| 11 | | benefits as specified in
Section 415 of the Internal Revenue |
| 12 | | Code of 1986, as such Section may be
amended from time to time |
| 13 | | and as such benefit limits shall be adjusted by
the |
| 14 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
| 15 | | earnings.
|
| 16 | | (d) An annuitant whose status as an employee terminates |
| 17 | | after August 14,
1969 shall receive automatic increases in his |
| 18 | | or her retirement annuity as
follows:
|
| 19 | | Effective January 1 immediately following the date the |
| 20 | | retirement annuity
begins, the annuitant shall receive an |
| 21 | | increase in his or her monthly
retirement annuity of 0.125% of |
| 22 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
| 23 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, |
| 24 | | multiplied by
the number of full months which elapsed from the |
| 25 | | date the retirement annuity
payments began to January 1, 1972, |
| 26 | | plus 0.1667% of such annuity, multiplied by
the number of full |
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| 1 | | months which elapsed from January 1, 1972, or the date the
|
| 2 | | retirement annuity payments began, whichever is later, to |
| 3 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
| 4 | | number of full months which elapsed
from January 1, 1978, or |
| 5 | | the date the retirement annuity payments began,
whichever is |
| 6 | | later, to the effective date of the increase.
|
| 7 | | The annuitant shall receive an increase in his or her |
| 8 | | monthly retirement
annuity on each January 1 thereafter during |
| 9 | | the annuitant's life of 3% of
the monthly annuity provided |
| 10 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in |
| 11 | | this Section. The change made under this subsection by P.A. |
| 12 | | 81-970 is
effective January 1, 1980 and applies to each |
| 13 | | annuitant whose status as
an employee terminates before or |
| 14 | | after that date.
|
| 15 | | Beginning January 1, 1990, all automatic annual increases |
| 16 | | payable under
this Section shall be calculated as a percentage |
| 17 | | of the total annuity
payable at the time of the increase, |
| 18 | | including all increases previously
granted under this Article.
|
| 19 | | The change made in this subsection by P.A. 85-1008 is |
| 20 | | effective January
26, 1988, and is applicable without regard to |
| 21 | | whether status as an employee
terminated before that date.
|
| 22 | | (e) If, on January 1, 1987, or the date the retirement |
| 23 | | annuity payment
period begins, whichever is later, the sum of |
| 24 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
| 25 | | Section
and the automatic annual increases provided under the |
| 26 | | preceding subsection
or Section 15-136.1, amounts to less than |
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| 1 | | the retirement
annuity which would be provided by Rule 3, the |
| 2 | | retirement
annuity shall be increased as of January 1, 1987, or |
| 3 | | the date the
retirement annuity payment period begins, |
| 4 | | whichever is later, to the amount
which would be provided by |
| 5 | | Rule 3 of this Section. Such increased
amount shall be |
| 6 | | considered as the retirement annuity in determining
benefits |
| 7 | | provided under other Sections of this Article. This paragraph
|
| 8 | | applies without regard to whether status as an employee |
| 9 | | terminated before the
effective date of this amendatory Act of |
| 10 | | 1987, provided that the annuitant was
employed at least |
| 11 | | one-half time during the period on which the final rate of
|
| 12 | | earnings was based.
|
| 13 | | (f) A participant is entitled to such additional annuity as |
| 14 | | may be provided
on an actuarially equivalent basis, by any |
| 15 | | accumulated
additional contributions to his or her credit. |
| 16 | | However,
the additional contributions made by the participant |
| 17 | | toward the automatic
increases in annuity provided under this |
| 18 | | Section and the contributions made under subsection (c-5) of |
| 19 | | Section 15-157 by this amendatory Act of the 98th General |
| 20 | | Assembly shall not be taken into
account in determining the |
| 21 | | amount of such additional annuity.
|
| 22 | | (g) If, (1) by law, a function of a governmental unit, as |
| 23 | | defined by Section
20-107 of this Code, is transferred in whole |
| 24 | | or in part to an employer, and (2)
a participant transfers |
| 25 | | employment from such governmental unit to such employer
within |
| 26 | | 6 months after the transfer of the function, and (3) the sum of |
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| 1 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
| 2 | | 3 of this Section (B)
all proportional annuities payable to the |
| 3 | | participant by all other retirement
systems covered by Article |
| 4 | | 20, and (C) the initial primary insurance amount to
which the |
| 5 | | participant is entitled under the Social Security Act, is less |
| 6 | | than
the retirement annuity which would have been payable if |
| 7 | | all of the
participant's pension credits validated under |
| 8 | | Section 20-109 had been validated
under this system, a |
| 9 | | supplemental annuity equal to the difference in such
amounts |
| 10 | | shall be payable to the participant.
|
| 11 | | (h) On January 1, 1981, an annuitant who was receiving
a |
| 12 | | retirement annuity on or before January 1, 1971 shall have his |
| 13 | | or her
retirement annuity then being paid increased $1 per |
| 14 | | month for
each year of creditable service. On January 1, 1982, |
| 15 | | an annuitant whose
retirement annuity began on or before |
| 16 | | January 1, 1977, shall have his or her
retirement annuity then |
| 17 | | being paid increased $1 per month for each year of
creditable |
| 18 | | service.
|
| 19 | | (i) On January 1, 1987, any annuitant whose retirement |
| 20 | | annuity began on or
before January 1, 1977, shall have the |
| 21 | | monthly retirement annuity increased by
an amount equal to 8¢ |
| 22 | | per year of creditable service times the number of years
that |
| 23 | | have elapsed since the annuity began.
|
| 24 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
| 25 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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| 1 | | Sec. 15-155. Employer contributions.
|
| 2 | | (a) The State of Illinois shall make contributions by |
| 3 | | appropriations of
amounts which, together with the other |
| 4 | | employer contributions from trust,
federal, and other funds, |
| 5 | | employee contributions, income from investments,
and other |
| 6 | | income of this System, will be sufficient to meet the cost of
|
| 7 | | maintaining and administering the System on a 100% 90% funded |
| 8 | | basis in accordance
with actuarial recommendations.
|
| 9 | | The Board shall determine the amount of State contributions |
| 10 | | required for
each fiscal year on the basis of the actuarial |
| 11 | | tables and other assumptions
adopted by the Board and the |
| 12 | | recommendations of the actuary, using the formula
in subsection |
| 13 | | (a-1).
|
| 14 | | (a-1) For State fiscal years 2015 through 2045, the minimum |
| 15 | | contribution
to the System to be made by the State for each |
| 16 | | fiscal year shall be an amount
determined by the System to be |
| 17 | | sufficient to bring the total assets of the
System up to 100% |
| 18 | | of the total actuarial liabilities of the System by the end of
|
| 19 | | State fiscal year 2045. In making these determinations, the |
| 20 | | required State
contribution shall be calculated each year as a |
| 21 | | level percentage of payroll
over the years remaining to and |
| 22 | | including fiscal year 2045 and shall be
determined under the |
| 23 | | projected unit credit actuarial cost method. |
| 24 | | For State fiscal years 2012 through 2014 2045, the minimum |
| 25 | | contribution
to the System to be made by the State for each |
| 26 | | 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 | | $166,641,900.
|
| 16 | | Notwithstanding any other provision of this Article, the |
| 17 | | total required State
contribution for State fiscal year 2007 is |
| 18 | | $252,064,100.
|
| 19 | | For each of State fiscal years 2008 through 2009, the State |
| 20 | | contribution to
the System, as a percentage of the applicable |
| 21 | | employee payroll, shall be
increased in equal annual increments |
| 22 | | from the required State contribution for State fiscal year |
| 23 | | 2007, so that by State fiscal year 2011, the
State is |
| 24 | | contributing at the rate otherwise required under this Section.
|
| 25 | | Notwithstanding any other provision of this Article, the |
| 26 | | total required State contribution for State fiscal year 2010 is |
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| 1 | | $702,514,000 and shall be made from the State Pensions Fund and |
| 2 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
| 3 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
| 4 | | share of bond sale expenses determined by the System's share of |
| 5 | | total bond proceeds, (ii) any amounts received from the General |
| 6 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
| 7 | | proceeds due to the issuance of discounted bonds, if |
| 8 | | applicable. |
| 9 | | Notwithstanding any other provision of this Article, the
|
| 10 | | total required State contribution for State fiscal year 2011 is
|
| 11 | | the amount recertified by the System on or before April 1, 2011 |
| 12 | | pursuant to Section 15-165 and shall be made from the State |
| 13 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
| 14 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
| 15 | | less (i) the pro rata
share of bond sale expenses determined by |
| 16 | | the System's share of
total bond proceeds, (ii) any amounts |
| 17 | | received from the General
Revenue Fund in fiscal year 2011, and |
| 18 | | (iii) any reduction in bond
proceeds due to the issuance of |
| 19 | | discounted bonds, if
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 100% 90%. A reference in this Article |
| 7 | | to the "required State contribution" or any substantially |
| 8 | | similar term does not include or apply to any amounts payable |
| 9 | | to the System under Section 25 of the Budget Stabilization Act. |
| 10 | | Notwithstanding any other provision of this Code or the |
| 11 | | Budget Stabilization Act, amounts transferred to the System |
| 12 | | pursuant to the Budget Stabilization Act after the effective |
| 13 | | date of this amendatory Act of the 98th General Assembly do not |
| 14 | | reduce and do not constitute payment of any portion of the |
| 15 | | required State contribution under this Article in that fiscal |
| 16 | | year. Such amounts shall not reduce, and shall not be included |
| 17 | | in the calculation of, the required State contributions under |
| 18 | | this Article in any future year until the System has received |
| 19 | | payment of contributions pursuant to the Budget Stabilization |
| 20 | | Act. |
| 21 | | Notwithstanding any other provision of this Section, the |
| 22 | | required State
contribution for State fiscal year 2005 and for |
| 23 | | fiscal year 2008 and each fiscal year thereafter through State |
| 24 | | fiscal year 2014, as
calculated under this Section and
|
| 25 | | certified under Section 15-165, shall not exceed an amount |
| 26 | | equal to (i) the
amount of the required State contribution that |
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| 1 | | would have been calculated under
this Section for that fiscal |
| 2 | | year if the System had not received any payments
under |
| 3 | | subsection (d) of Section 7.2 of the General Obligation Bond |
| 4 | | Act, minus
(ii) the portion of the State's total debt service |
| 5 | | payments for that fiscal
year on the bonds issued in fiscal |
| 6 | | year 2003 for the purposes of that Section 7.2, as determined
|
| 7 | | and certified by the Comptroller, that is the same as the |
| 8 | | System's portion of
the total moneys distributed under |
| 9 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
| 10 | | Act. In determining this maximum for State fiscal years 2008 |
| 11 | | through 2010, however, the amount referred to in item (i) shall |
| 12 | | be increased, as a percentage of the applicable employee |
| 13 | | payroll, in equal increments calculated from the sum of the |
| 14 | | required State contribution for State fiscal year 2007 plus the |
| 15 | | applicable portion of the State's total debt service payments |
| 16 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
| 17 | | for the purposes of Section 7.2 of the General
Obligation Bond |
| 18 | | Act, so that, by State fiscal year 2011, the
State is |
| 19 | | contributing at the rate otherwise required under this Section.
|
| 20 | | (b) If an employee is paid from trust or federal funds, the |
| 21 | | employer
shall pay to the Board contributions from those funds |
| 22 | | which are
sufficient to cover the accruing normal costs on |
| 23 | | behalf of the employee.
However, universities having employees |
| 24 | | who are compensated out of local
auxiliary funds, income funds, |
| 25 | | or service enterprise funds are not required
to pay such |
| 26 | | contributions on behalf of those employees. The local auxiliary
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| 1 | | funds, income funds, and service enterprise funds of |
| 2 | | universities shall not be
considered trust funds for the |
| 3 | | purpose of this Article, but funds of alumni
associations, |
| 4 | | foundations, and athletic associations which are affiliated |
| 5 | | with
the universities included as employers under this Article |
| 6 | | and other employers
which do not receive State appropriations |
| 7 | | are considered to be trust funds for
the purpose of this |
| 8 | | Article.
|
| 9 | | (b-1) The City of Urbana and the City of Champaign shall |
| 10 | | each make
employer contributions to this System for their |
| 11 | | respective firefighter
employees who participate in this |
| 12 | | System pursuant to subsection (h) of Section
15-107. The rate |
| 13 | | of contributions to be made by those municipalities shall
be |
| 14 | | determined annually by the Board on the basis of the actuarial |
| 15 | | assumptions
adopted by the Board and the recommendations of the |
| 16 | | actuary, and shall be
expressed as a percentage of salary for |
| 17 | | each such employee. The Board shall
certify the rate to the |
| 18 | | affected municipalities as soon as may be practical.
The |
| 19 | | employer contributions required under this subsection shall be |
| 20 | | remitted by
the municipality to the System at the same time and |
| 21 | | in the same manner as
employee contributions.
|
| 22 | | (c) Through State fiscal year 1995: The total employer |
| 23 | | contribution shall
be apportioned among the various funds of |
| 24 | | the State and other employers,
whether trust, federal, or other |
| 25 | | funds, in accordance with actuarial procedures
approved by the |
| 26 | | Board. State of Illinois contributions for employers receiving
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| 1 | | State appropriations for personal services shall be payable |
| 2 | | from appropriations
made to the employers or to the System. The |
| 3 | | contributions for Class I
community colleges covering earnings |
| 4 | | other than those paid from trust and
federal funds, shall be |
| 5 | | payable solely from appropriations to the Illinois
Community |
| 6 | | College Board or the System for employer contributions.
|
| 7 | | (d) Beginning in State fiscal year 1996, the required State |
| 8 | | contributions
to the System shall be appropriated directly to |
| 9 | | the System and shall be payable
through vouchers issued in |
| 10 | | accordance with subsection (c) of Section 15-165, except as |
| 11 | | provided in subsection (g).
|
| 12 | | (e) The State Comptroller shall draw warrants payable to |
| 13 | | the System upon
proper certification by the System or by the |
| 14 | | employer in accordance with the
appropriation laws and this |
| 15 | | Code.
|
| 16 | | (f) Normal costs under this Section means liability for
|
| 17 | | pensions and other benefits which accrues to the System because |
| 18 | | of the
credits earned for service rendered by the participants |
| 19 | | during the
fiscal year and expenses of administering the |
| 20 | | System, but shall not
include the principal of or any |
| 21 | | redemption premium or interest on any bonds
issued by the Board |
| 22 | | or any expenses incurred or deposits required in
connection |
| 23 | | therewith.
|
| 24 | | (g) If the amount of a participant's earnings for any |
| 25 | | academic year used to determine the final rate of earnings, |
| 26 | | determined on a full-time equivalent basis, exceeds the amount |
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| 1 | | of his or her earnings with the same employer for the previous |
| 2 | | academic year, determined on a full-time equivalent basis, by |
| 3 | | more than 6%, the participant's employer shall pay to the |
| 4 | | System, in addition to all other payments required under this |
| 5 | | Section and in accordance with guidelines established by the |
| 6 | | System, the present value of the increase in benefits resulting |
| 7 | | from the portion of the increase in earnings that is in excess |
| 8 | | of 6%. This present value shall be computed by the System on |
| 9 | | the basis of the actuarial assumptions and tables used in the |
| 10 | | most recent actuarial valuation of the System that is available |
| 11 | | at the time of the computation. The System may require the |
| 12 | | employer to provide any pertinent information or |
| 13 | | documentation. |
| 14 | | Whenever it determines that a payment is or may be required |
| 15 | | under this subsection (g), the System shall calculate the |
| 16 | | amount of the payment and bill the employer for that amount. |
| 17 | | The bill shall specify the calculations used to determine the |
| 18 | | amount due. If the employer disputes the amount of the bill, it |
| 19 | | may, within 30 days after receipt of the bill, apply to the |
| 20 | | System in writing for a recalculation. The application must |
| 21 | | specify in detail the grounds of the dispute and, if the |
| 22 | | employer asserts that the calculation is subject to subsection |
| 23 | | (h) or (i) of this Section, must include an affidavit setting |
| 24 | | forth and attesting to all facts within the employer's |
| 25 | | knowledge that are pertinent to the applicability of subsection |
| 26 | | (h) or (i). Upon receiving a timely application for |
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| 1 | | recalculation, the System shall review the application and, if |
| 2 | | appropriate, recalculate the amount due.
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| 3 | | The employer contributions required under this subsection |
| 4 | | (g) (f) may be paid in the form of a lump sum within 90 days |
| 5 | | after receipt of the bill. If the employer contributions are |
| 6 | | not paid within 90 days after receipt of the bill, then |
| 7 | | interest will be charged at a rate equal to the System's annual |
| 8 | | actuarially assumed rate of return on investment compounded |
| 9 | | annually from the 91st day after receipt of the bill. Payments |
| 10 | | must be concluded within 3 years after the employer's receipt |
| 11 | | of the bill. |
| 12 | | (h) This subsection (h) applies only to payments made or |
| 13 | | salary increases given on or after June 1, 2005 but before July |
| 14 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
| 15 | | require the System to refund any payments received before July |
| 16 | | 31, 2006 (the effective date of Public Act 94-1057). |
| 17 | | When assessing payment for any amount due under subsection |
| 18 | | (g), the System shall exclude earnings increases paid to |
| 19 | | participants under contracts or collective bargaining |
| 20 | | agreements entered into, amended, or renewed before June 1, |
| 21 | | 2005.
|
| 22 | | When assessing payment for any amount due under subsection |
| 23 | | (g), the System shall exclude earnings increases paid to a |
| 24 | | participant at a time when the participant is 10 or more years |
| 25 | | from retirement eligibility under Section 15-135.
|
| 26 | | When assessing payment for any amount due under subsection |
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| 1 | | (g), the System shall exclude earnings increases resulting from |
| 2 | | overload work, including a contract for summer teaching, or |
| 3 | | overtime when the employer has certified to the System, and the |
| 4 | | System has approved the certification, that: (i) in the case of |
| 5 | | overloads (A) the overload work is for the sole purpose of |
| 6 | | academic instruction in excess of the standard number of |
| 7 | | instruction hours for a full-time employee occurring during the |
| 8 | | academic year that the overload is paid and (B) the earnings |
| 9 | | increases are equal to or less than the rate of pay for |
| 10 | | academic instruction computed using the participant's current |
| 11 | | salary rate and work schedule; and (ii) in the case of |
| 12 | | overtime, the overtime was necessary for the educational |
| 13 | | mission. |
| 14 | | When assessing payment for any amount due under subsection |
| 15 | | (g), the System shall exclude any earnings increase resulting |
| 16 | | from (i) a promotion for which the employee moves from one |
| 17 | | classification to a higher classification under the State |
| 18 | | Universities Civil Service System, (ii) a promotion in academic |
| 19 | | rank for a tenured or tenure-track faculty position, or (iii) a |
| 20 | | promotion that the Illinois Community College Board has |
| 21 | | recommended in accordance with subsection (k) of this Section. |
| 22 | | These earnings increases shall be excluded only if the |
| 23 | | promotion is to a position that has existed and been filled by |
| 24 | | a member for no less than one complete academic year and the |
| 25 | | earnings increase as a result of the promotion is an increase |
| 26 | | that results in an amount no greater than the average salary |
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| 1 | | paid for other similar positions. |
| 2 | | (i) When assessing payment for any amount due under |
| 3 | | subsection (g), the System shall exclude any salary increase |
| 4 | | described in subsection (h) of this Section given on or after |
| 5 | | July 1, 2011 but before July 1, 2014 under a contract or |
| 6 | | collective bargaining agreement entered into, amended, or |
| 7 | | renewed on or after June 1, 2005 but before July 1, 2011. |
| 8 | | Notwithstanding any other provision of this Section, any |
| 9 | | payments made or salary increases given after June 30, 2014 |
| 10 | | shall be used in assessing payment for any amount due under |
| 11 | | subsection (g) of this Section.
|
| 12 | | (j) The System shall prepare a report and file copies of |
| 13 | | the report with the Governor and the General Assembly by |
| 14 | | January 1, 2007 that contains all of the following information: |
| 15 | | (1) The number of recalculations required by the |
| 16 | | changes made to this Section by Public Act 94-1057 for each |
| 17 | | employer. |
| 18 | | (2) The dollar amount by which each employer's |
| 19 | | contribution to the System was changed due to |
| 20 | | recalculations required by Public Act 94-1057. |
| 21 | | (3) The total amount the System received from each |
| 22 | | employer as a result of the changes made to this Section by |
| 23 | | Public Act 94-4. |
| 24 | | (4) The increase in the required State contribution |
| 25 | | resulting from the changes made to this Section by Public |
| 26 | | Act 94-1057. |
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| 1 | | (k) The Illinois Community College Board shall adopt rules |
| 2 | | for recommending lists of promotional positions submitted to |
| 3 | | the Board by community colleges and for reviewing the |
| 4 | | promotional lists on an annual basis. When recommending |
| 5 | | promotional lists, the Board shall consider the similarity of |
| 6 | | the positions submitted to those positions recognized for State |
| 7 | | universities by the State Universities Civil Service System. |
| 8 | | The Illinois Community College Board shall file a copy of its |
| 9 | | findings with the System. The System shall consider the |
| 10 | | findings of the Illinois Community College Board when making |
| 11 | | determinations under this Section. The System shall not exclude |
| 12 | | any earnings increases resulting from a promotion when the |
| 13 | | promotion was not submitted by a community college. Nothing in |
| 14 | | this subsection (k) shall require any community college to |
| 15 | | submit any information to the Community College Board.
|
| 16 | | (l) For purposes of determining the required State |
| 17 | | contribution to the System, the value of the System's assets |
| 18 | | shall be equal to the actuarial value of the System's assets, |
| 19 | | which shall be calculated as follows: |
| 20 | | As of June 30, 2008, the actuarial value of the System's |
| 21 | | assets shall be equal to the market value of the assets as of |
| 22 | | that date. In determining the actuarial value of the System's |
| 23 | | assets for fiscal years after June 30, 2008, any actuarial |
| 24 | | gains or losses from investment return incurred in a fiscal |
| 25 | | year shall be recognized in equal annual amounts over the |
| 26 | | 5-year period following that fiscal year. |
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| 1 | | (m) For purposes of determining the required State |
| 2 | | contribution to the system for a particular year, the actuarial |
| 3 | | value of assets shall be assumed to earn a rate of return equal |
| 4 | | to the system's actuarially assumed rate of return. |
| 5 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
| 6 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
| 7 | | 7-13-12; revised 10-17-12.)
|
| 8 | | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
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| 9 | | Sec. 15-156. Obligations of State; funding guarantees. |
| 10 | | (a) The payment of (1) the
required State contributions, |
| 11 | | (2) all benefits
granted under this system and (3) all expenses |
| 12 | | in connection with the
administration and operation thereof are |
| 13 | | obligations of the State of
Illinois to the extent specified in |
| 14 | | this Article. The accumulated
employee normal, additional and |
| 15 | | survivors insurance contributions
credited to the accounts of |
| 16 | | active and inactive participants
shall not be used to pay the |
| 17 | | State's share of the obligations.
|
| 18 | | (c) Pursuant to Article XIII, Section 5 of the 1970 |
| 19 | | Constitution of the State of Illinois, beginning on July 1, |
| 20 | | 2013, the State shall, as a retirement benefit to each |
| 21 | | participant and annuitant of the System be contractually |
| 22 | | obligated to the System (as a fiduciary and trustee of the |
| 23 | | participants and annuitants) to pay the annual required State |
| 24 | | contribution, as determined by the Board of the System using |
| 25 | | generally accepted actuarial principles, as is necessary to |
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| 1 | | bring the total assets of the System up to 100% of the total |
| 2 | | actuarial liabilities of the System by the end of State fiscal |
| 3 | | year 2045. As a further retirement benefit and contractual |
| 4 | | obligation, each fiscal year, the State shall pay to each |
| 5 | | designated retirement system the annual required State |
| 6 | | contribution certified by the Board for that fiscal year. |
| 7 | | Payments of the annual required State contribution for each |
| 8 | | fiscal year shall be made in equal monthly installments. |
| 9 | | Additionally, beginning in fiscal year 2014, State transfers to |
| 10 | | the Pension Stabilization Fund pursuant to Section 20 of the |
| 11 | | Budget Stabilization Act and payments to the System pursuant to |
| 12 | | Section 25 of the Budget Stabilization Act shall be further |
| 13 | | retirement benefits and contractual obligations. The transfers |
| 14 | | and payments prescribed in Sections 20 and 25 of the Budget |
| 15 | | Stabilization Act shall not be used by the retirement system |
| 16 | | when calculation any pension payment until the System has |
| 17 | | reached a funded level of 100%. This Section and the security |
| 18 | | it provides to participants and annuitants is intended to be, |
| 19 | | and is, a contractual right that is part of the pension |
| 20 | | benefits provided to the participants and annuitants. |
| 21 | | Notwithstanding anything to the contrary in the Court of Claims |
| 22 | | Act or any other law, a designated retirement system has the |
| 23 | | exclusive right to and shall bring a mandamus action in the |
| 24 | | Circuit Court of Champaign County against the State to compel |
| 25 | | the State to make any installment of the annual required State |
| 26 | | contribution required by this Section, irrespective of other |
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| 1 | | remedies that may be available to the System. Each member or |
| 2 | | annuitant of the System has the right to in any judicial |
| 3 | | district in which the System maintains an office if the System |
| 4 | | fails to bring an action specified in this Section, |
| 5 | | irrespective of other remedies that may be available to the |
| 6 | | member or annuitant. In making these determinations, the |
| 7 | | required State contribution shall be calculated each year as a |
| 8 | | level percentage of payroll over the years remaining to and |
| 9 | | including fiscal year 2045 and shall be determined under the |
| 10 | | projected unit credit actuarial cost method. |
| 11 | | (Source: P.A. 83-1440.)
|
| 12 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
| 13 | | Sec. 15-157. Employee Contributions.
|
| 14 | | (a) Each participating employee
shall make contributions |
| 15 | | towards the retirement
benefits payable under the retirement |
| 16 | | program applicable to the
employee from each payment
of |
| 17 | | earnings applicable to employment under this system on and |
| 18 | | after the
date of becoming a participant as follows: Prior to |
| 19 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
| 20 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
| 21 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
| 22 | | are to be considered as normal contributions for purposes
of |
| 23 | | this Article.
|
| 24 | | Each participant who is a police officer or firefighter |
| 25 | | shall make normal
contributions of 8% of each payment of |
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| 1 | | earnings applicable to employment as a
police officer or |
| 2 | | firefighter under this system on or after September 1, 1981,
|
| 3 | | unless he or she files with the board within 60 days after the |
| 4 | | effective date
of this amendatory Act of 1991 or 60 days after |
| 5 | | the board receives notice that
he or she is employed as a |
| 6 | | police officer or firefighter, whichever is later,
a written |
| 7 | | notice waiving the retirement formula provided by Rule 4 of |
| 8 | | Section
15-136. This waiver shall be irrevocable. If a |
| 9 | | participant had met the
conditions set forth in Section |
| 10 | | 15-132.1 prior to the effective date of this
amendatory Act of |
| 11 | | 1991 but failed to make the additional normal contributions
|
| 12 | | required by this paragraph, he or she may elect to pay the |
| 13 | | additional
contributions plus compound interest at the |
| 14 | | effective rate. If such payment
is received by the board, the |
| 15 | | service shall be considered as police officer
service in |
| 16 | | calculating the retirement annuity under Rule 4 of Section |
| 17 | | 15-136.
While performing service described in clause (i) or |
| 18 | | (ii) of Rule 4 of Section
15-136, a participating employee |
| 19 | | shall be deemed to be employed as a
firefighter for the purpose |
| 20 | | of determining the rate of employee contributions
under this |
| 21 | | Section.
|
| 22 | | (b) Starting September 1, 1969, each participating |
| 23 | | employee shall make
additional contributions of 1/2 of 1% of |
| 24 | | earnings to finance a portion
of the cost of the annual |
| 25 | | increases in retirement annuity provided under
Section 15-136, |
| 26 | | except that with respect to participants in the
self-managed |
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| 1 | | plan this additional contribution shall be used to finance the
|
| 2 | | benefits obtained under that retirement program.
|
| 3 | | (c) In addition to the amounts described in subsections (a) |
| 4 | | and (b) of this
Section, each participating employee shall make |
| 5 | | contributions of 1% of earnings
applicable under this system on |
| 6 | | and after August 1, 1959. The contributions
made under this |
| 7 | | subsection (c) shall be considered as survivor's insurance
|
| 8 | | contributions for purposes of this Article if the employee is |
| 9 | | covered under
the traditional benefit package, and such |
| 10 | | contributions shall be considered
as additional contributions |
| 11 | | for purposes of this Article if the employee is
participating |
| 12 | | in the self-managed plan or has elected to participate in the
|
| 13 | | portable benefit package and has completed the applicable |
| 14 | | one-year waiting
period. Contributions in excess of $80 during |
| 15 | | any fiscal year beginning before
August 31, 1969 and in excess |
| 16 | | of $120 during any fiscal year thereafter until
September 1, |
| 17 | | 1971 shall be considered as additional contributions for |
| 18 | | purposes
of this Article.
|
| 19 | | (c-5) In addition to the contributions otherwise required |
| 20 | | under this Article, each Tier I participant shall also make the |
| 21 | | following contributions toward the cost of his or her |
| 22 | | retirement annuity from each payment
of salary received by him |
| 23 | | or her for service as a member: |
| 24 | | (1) beginning July 1, 2013 and through June 30, 2014, |
| 25 | | 1% of earnings; and |
| 26 | | (2) beginning on July 1, 2014, 2% of earnings. |
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| 1 | | Except as otherwise specified, these contributions are to |
| 2 | | be considered as normal contributions for purposes
of this |
| 3 | | Article. |
| 4 | | (d) If the board by board rule so permits and subject to |
| 5 | | such conditions
and limitations as may be specified in its |
| 6 | | rules, a participant may make
other additional contributions of |
| 7 | | such percentage of earnings or amounts as
the participant shall |
| 8 | | elect in a written notice thereof received by the board.
|
| 9 | | (e) That fraction of a participant's total accumulated |
| 10 | | normal
contributions, the numerator of which is equal to the |
| 11 | | number of years of
service in excess of that which is required |
| 12 | | to qualify for the maximum
retirement annuity, and the |
| 13 | | denominator of which is equal to the total
service of the |
| 14 | | participant, shall be considered as accumulated additional
|
| 15 | | contributions. The determination of the applicable maximum |
| 16 | | annuity and
the adjustment in contributions required by this |
| 17 | | provision shall be made
as of the date of the participant's |
| 18 | | retirement.
|
| 19 | | (f) Notwithstanding the foregoing, a participating |
| 20 | | employee shall not
be required to make contributions under this |
| 21 | | Section after the date upon
which continuance of such |
| 22 | | contributions would otherwise cause his or her
retirement |
| 23 | | annuity to exceed the maximum retirement annuity as specified |
| 24 | | in
clause (1) of subsection (c) of Section 15-136.
|
| 25 | | (g) A participating employee may make contributions for the |
| 26 | | purchase of
service credit under this Article.
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| 1 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, |
| 2 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; |
| 3 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
|
| 4 | | (40 ILCS 5/16-106.4 new) |
| 5 | | Sec. 16-106.4. Tier I member. "Tier I member": A member |
| 6 | | under this Article who first became a member or participant |
| 7 | | before January 1, 2011 under any reciprocal retirement system |
| 8 | | or pension fund established under this Code other than a |
| 9 | | retirement system or pension fund established under Article 2, |
| 10 | | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree.
|
| 11 | | (40 ILCS 5/16-106.5 new) |
| 12 | | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former |
| 13 | | Tier I member who is receiving a retirement annuity.
|
| 14 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
|
| 15 | | Sec. 16-133. Retirement annuity; amount.
|
| 16 | | (a) The amount of the retirement annuity shall be (i) in |
| 17 | | the case of a person who first became a teacher under this |
| 18 | | Article before July 1, 2005, the larger of the
amounts |
| 19 | | determined under paragraphs (A) and (B) below, or (ii) in the |
| 20 | | case of a person who first becomes a teacher under this Article |
| 21 | | on or after July 1, 2005, the amount determined under the |
| 22 | | applicable provisions of paragraph (B):
|
| 23 | | (A) An amount consisting of the sum of the following:
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| 1 | | (1) An amount that can be provided on an |
| 2 | | actuarially equivalent basis
by the member's |
| 3 | | accumulated contributions at the time of retirement; |
| 4 | | and
|
| 5 | | (2) The sum of (i) the amount that can be provided |
| 6 | | on an actuarially
equivalent basis by the member's |
| 7 | | accumulated contributions representing
service prior |
| 8 | | to July 1, 1947, and (ii) the amount that can be |
| 9 | | provided on
an actuarially equivalent basis by the |
| 10 | | amount obtained by multiplying 1.4
times the member's |
| 11 | | accumulated contributions covering service subsequent |
| 12 | | to
June 30, 1947; and
|
| 13 | | (3) If there is prior service, 2 times the amount |
| 14 | | that would have been
determined under subparagraph (2) |
| 15 | | of paragraph (A) above on account of
contributions |
| 16 | | which would have been made during the period of prior |
| 17 | | service
creditable to the member had the System been in |
| 18 | | operation and had the
member made contributions at the |
| 19 | | contribution rate in effect prior to
July 1, 1947.
|
| 20 | | For the purpose of calculating the sum provided under |
| 21 | | this paragraph (A), the contribution required under |
| 22 | | subsection (a-5) of Section 16-152 shall not be considered |
| 23 | | when determining the amount of the member's accumulated |
| 24 | | contributions under subparagraph (1) or (2). |
| 25 | | This paragraph (A) does not apply to a person who first |
| 26 | | becomes a teacher under this Article on or after July 1, |
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| 1 | | 2005.
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| 2 | | (B) An amount consisting of the greater of the |
| 3 | | following:
|
| 4 | | (1) For creditable service earned before July 1, |
| 5 | | 1998 that has not
been augmented under Section |
| 6 | | 16-129.1: 1.67% of final average salary for
each of the |
| 7 | | first 10 years of creditable service, 1.90% of final |
| 8 | | average salary
for each year in excess of 10 but not |
| 9 | | exceeding 20, 2.10% of final average
salary for each |
| 10 | | year in excess of 20 but not exceeding 30, and 2.30% of |
| 11 | | final
average salary for each year in excess of 30; and
|
| 12 | | For creditable service earned on or after July 1, |
| 13 | | 1998 by a member who
has at least 24 years of |
| 14 | | creditable service on July 1, 1998 and who
does not |
| 15 | | elect to augment service under Section 16-129.1: 2.2% |
| 16 | | of final
average salary for each year of creditable |
| 17 | | service earned on or after July 1,
1998 but before the |
| 18 | | member reaches a total of 30 years of creditable |
| 19 | | service
and 2.3% of final average salary for each year |
| 20 | | of creditable service earned
on or after July 1, 1998 |
| 21 | | and after the member reaches a total of 30 years of
|
| 22 | | creditable service; and
|
| 23 | | For all other creditable service: 2.2% of final |
| 24 | | average salary
for each year of creditable service; or
|
| 25 | | (2) 1.5% of final average salary for each year of
|
| 26 | | creditable service plus the sum $7.50 for each of the |
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| 1 | | first 20 years of
creditable service.
|
| 2 | | The amount of the retirement annuity determined under this |
| 3 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month |
| 4 | | that the member is less than
age 60 at the time the |
| 5 | | retirement annuity begins. However, this reduction
shall |
| 6 | | not apply (i) if the member has at least 35 years of |
| 7 | | creditable service,
or (ii) if the member retires on |
| 8 | | account of disability under Section 16-149.2
of this |
| 9 | | Article with at least 20 years of creditable service, or |
| 10 | | (iii) if
the member (1) has earned during the period |
| 11 | | immediately preceding the last
day of service at least one |
| 12 | | year of contributing creditable service as an
employee of a |
| 13 | | department as defined in Section 14-103.04, (2) has earned |
| 14 | | at
least 5 years of contributing creditable service as an |
| 15 | | employee of a department
as defined in Section 14-103.04, |
| 16 | | (3) retires on or after January 1, 2001, and
(4) retires |
| 17 | | having attained an age which, when added to the number of |
| 18 | | years of
his or her total creditable service, equals at |
| 19 | | least 85. Portions of years
shall be counted as decimal |
| 20 | | equivalents.
|
| 21 | | (b) For purposes of this Section, final average salary |
| 22 | | shall be the
average salary for the highest 4 consecutive years |
| 23 | | within the last 10 years
of creditable service as determined |
| 24 | | under rules of the board. The minimum
final average salary |
| 25 | | shall be considered to be $2,400 per year.
|
| 26 | | In the determination of final average salary for members |
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| 1 | | other than
elected officials and their appointees when such |
| 2 | | appointees are allowed by
statute, that part of a member's |
| 3 | | salary for any year beginning after June
30, 1979 which exceeds |
| 4 | | the member's annual full-time salary rate with the
same |
| 5 | | employer for the preceding year by more than 20% shall be |
| 6 | | excluded.
The exclusion shall not apply in any year in which |
| 7 | | the member's creditable
earnings are less than 50% of the |
| 8 | | preceding year's mean salary for downstate
teachers as |
| 9 | | determined by the survey of school district salaries provided |
| 10 | | in
Section 2-3.103 of the School Code.
|
| 11 | | (c) In determining the amount of the retirement annuity |
| 12 | | under paragraph
(B) of this Section, a fractional year shall be |
| 13 | | granted proportional credit.
|
| 14 | | (d) The retirement annuity determined under paragraph (B) |
| 15 | | of this Section
shall be available only to members who render |
| 16 | | teaching service after July
1, 1947 for which member |
| 17 | | contributions are required, and to annuitants who
re-enter |
| 18 | | under the provisions of Section 16-150.
|
| 19 | | (e) The maximum retirement annuity provided under |
| 20 | | paragraph (B) of this
Section shall be 75% of final average |
| 21 | | salary.
|
| 22 | | (f) A member retiring after the effective date of this |
| 23 | | amendatory Act
of 1998 shall receive a pension equal to 75% of |
| 24 | | final average salary if the
member is qualified to receive a |
| 25 | | retirement annuity equal to at least 74.6%
of final average |
| 26 | | salary under this Article or as proportional annuities under
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| 1 | | Article 20 of this Code.
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| 2 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
| 3 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
|
| 4 | | Sec. 16-152. Contributions by members.
|
| 5 | | (a) Each member shall make contributions for membership |
| 6 | | service to this
System as follows:
|
| 7 | | (1) Effective July 1, 1998, contributions of 7.50% of |
| 8 | | salary towards the
cost of the retirement annuity. Such |
| 9 | | contributions shall be deemed "normal
contributions".
|
| 10 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% |
| 11 | | of salary toward
the cost of the automatic annual increase |
| 12 | | in retirement annuity provided
under Section 16-133.1.
|
| 13 | | (3) Effective July 24, 1959, contributions of 1% of |
| 14 | | salary towards the
cost of survivor benefits. Such |
| 15 | | contributions shall not be credited to
the individual |
| 16 | | account of the member and shall not be subject to refund
|
| 17 | | except as provided under Section 16-143.2.
|
| 18 | | (4) Effective July 1, 2005, contributions of 0.40% of |
| 19 | | salary toward the cost of the early retirement without |
| 20 | | discount option provided under Section 16-133.2. This |
| 21 | | contribution shall cease upon termination of the early |
| 22 | | retirement without discount option as provided in Section |
| 23 | | 16-176.
|
| 24 | | (a-5) In addition to the contributions otherwise required |
| 25 | | under this Article, each Tier I participant shall also make the |
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| 1 | | following contributions toward the cost of his or her |
| 2 | | retirement annuity from each payment
of salary received by him |
| 3 | | or her for service as a member: |
| 4 | | (1) beginning July 1, 2013 and through June 30, 2014, |
| 5 | | 1% of salary; and |
| 6 | | (2) beginning on July 1, 2014, 2% of salary. |
| 7 | | Except as otherwise specified, these contributions are to |
| 8 | | be considered as normal contributions for purposes
of this |
| 9 | | Article. |
| 10 | | (b) The minimum required contribution for any year of |
| 11 | | full-time
teaching service shall be $192.
|
| 12 | | (c) Contributions shall not be required of any annuitant |
| 13 | | receiving
a retirement annuity who is given employment as |
| 14 | | permitted under Section 16-118 or 16-150.1.
|
| 15 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
| 16 | | retires with
more than 34 years of creditable service, and |
| 17 | | (iii) does not elect to qualify
for the augmented rate under |
| 18 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
| 19 | | to receive a partial refund of contributions made under this
|
| 20 | | Section for service occurring after the later of June 30, 1998 |
| 21 | | or attainment
of 34 years of creditable service, in an amount |
| 22 | | equal to 1.00% of the salary
upon which those contributions |
| 23 | | were based.
|
| 24 | | (e) A member's contributions toward the cost of early |
| 25 | | retirement without discount made under item (a)(4) of this |
| 26 | | Section shall not be refunded if the member has elected early |
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| 1 | | retirement without discount under Section 16-133.2 and has |
| 2 | | begun to receive a retirement annuity under this Article |
| 3 | | calculated in accordance with that election. Otherwise, a |
| 4 | | member's contributions toward the cost of early retirement |
| 5 | | without discount made under item (a)(4) of this Section shall |
| 6 | | be refunded according to whichever one of the following |
| 7 | | circumstances occurs first: |
| 8 | | (1) The contributions shall be refunded to the member, |
| 9 | | without interest, within 120 days after the member's |
| 10 | | retirement annuity commences, if the member does not elect |
| 11 | | early retirement without discount under Section 16-133.2. |
| 12 | | (2) The contributions shall be included, without |
| 13 | | interest, in any refund claimed by the member under Section |
| 14 | | 16-151. |
| 15 | | (3) The contributions shall be refunded to the member's |
| 16 | | designated beneficiary (or if there is no beneficiary, to |
| 17 | | the member's estate), without interest, if the member dies |
| 18 | | without having begun to receive a retirement annuity under |
| 19 | | this Article. |
| 20 | | (4) The contributions shall be refunded to the member, |
| 21 | | without interest, within 120 days after the early |
| 22 | | retirement without discount option provided under Section |
| 23 | | 16-133.2 is terminated under Section 16-176.
|
| 24 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
|
| 25 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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| 1 | | Sec. 16-158. Contributions by State and other employing |
| 2 | | units.
|
| 3 | | (a) The State shall make contributions to the System by |
| 4 | | means of
appropriations from the Common School Fund and other |
| 5 | | State funds of amounts
which, together with other employer |
| 6 | | contributions, employee contributions,
investment income, and |
| 7 | | other income, will be sufficient to meet the cost of
|
| 8 | | maintaining and administering the System on a 100% 90% funded |
| 9 | | basis in accordance
with actuarial recommendations.
|
| 10 | | The Board shall determine the amount of State contributions |
| 11 | | required for
each fiscal year on the basis of the actuarial |
| 12 | | tables and other assumptions
adopted by the Board and the |
| 13 | | recommendations of the actuary, using the formula
in subsection |
| 14 | | (b-3).
|
| 15 | | (a-1) Annually, on or before November 15 until November 15, |
| 16 | | 2011, the Board shall certify to the
Governor the amount of the |
| 17 | | required State contribution for the coming fiscal
year. The |
| 18 | | certification under this subsection (a-1) shall include a copy |
| 19 | | of the actuarial recommendations
upon which it is based and |
| 20 | | shall specifically identify the System's projected State |
| 21 | | normal cost for that fiscal year.
|
| 22 | | On or before May 1, 2004, the Board shall recalculate and |
| 23 | | recertify to
the Governor the amount of the required State |
| 24 | | contribution to the System for
State fiscal year 2005, taking |
| 25 | | into account the amounts appropriated to and
received by the |
| 26 | | System under subsection (d) of Section 7.2 of the General
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| 1 | | Obligation Bond Act.
|
| 2 | | On or before July 1, 2005, the Board shall recalculate and |
| 3 | | recertify
to the Governor the amount of the required State
|
| 4 | | contribution to the System for State fiscal year 2006, taking |
| 5 | | into account the changes in required State contributions made |
| 6 | | by this amendatory Act of the 94th General Assembly.
|
| 7 | | On or before April 1, 2011, the Board shall recalculate and |
| 8 | | recertify to the Governor the amount of the required State |
| 9 | | contribution to the System for State fiscal year 2011, applying |
| 10 | | the changes made by Public Act 96-889 to the System's assets |
| 11 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
| 12 | | was approved on that date. |
| 13 | | (a-5) On or before November 1 of each year, beginning |
| 14 | | November 1, 2012, the Board shall submit to the State Actuary, |
| 15 | | the Governor, and the General Assembly a proposed certification |
| 16 | | of the amount of the required State contribution to the System |
| 17 | | for the next fiscal year, along with all of the actuarial |
| 18 | | assumptions, calculations, and data upon which that proposed |
| 19 | | certification is based. On or before January 1 of each year, |
| 20 | | beginning January 1, 2013, the State Actuary shall issue a |
| 21 | | preliminary report concerning the proposed certification and |
| 22 | | identifying, if necessary, recommended changes in actuarial |
| 23 | | assumptions that the Board must consider before finalizing its |
| 24 | | certification of the required State contributions. On or before |
| 25 | | January 15, 2013 and each January 15 thereafter, the Board |
| 26 | | shall certify to the Governor and the General Assembly the |
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| 1 | | amount of the required State contribution for the next fiscal |
| 2 | | year. The Board's certification must note any deviations from |
| 3 | | the State Actuary's recommended changes, the reason or reasons |
| 4 | | for not following the State Actuary's recommended changes, and |
| 5 | | the fiscal impact of not following the State Actuary's |
| 6 | | recommended changes on the required State contribution. |
| 7 | | (b) Through State fiscal year 1995, the State contributions |
| 8 | | shall be
paid to the System in accordance with Section 18-7 of |
| 9 | | the School Code.
|
| 10 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
| 11 | | of each month,
or as soon thereafter as may be practicable, the |
| 12 | | Board shall submit vouchers
for payment of State contributions |
| 13 | | to the System, in a total monthly amount of
one-twelfth of the |
| 14 | | required annual State contribution certified under
subsection |
| 15 | | (a-1).
From the
effective date of this amendatory Act of the |
| 16 | | 93rd General Assembly
through June 30, 2004, the Board shall |
| 17 | | not submit vouchers for the
remainder of fiscal year 2004 in |
| 18 | | excess of the fiscal year 2004
certified contribution amount |
| 19 | | determined under this Section
after taking into consideration |
| 20 | | the transfer to the System
under subsection (a) of Section |
| 21 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
| 22 | | the State Comptroller and
Treasurer by warrants drawn on the |
| 23 | | funds appropriated to the System for that
fiscal year.
|
| 24 | | If in any month the amount remaining unexpended from all |
| 25 | | other appropriations
to the System for the applicable fiscal |
| 26 | | year (including the appropriations to
the System under Section |
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| 1 | | 8.12 of the State Finance Act and Section 1 of the
State |
| 2 | | Pension Funds Continuing Appropriation Act) is less than the |
| 3 | | amount
lawfully vouchered under this subsection, the |
| 4 | | difference shall be paid from the
Common School Fund under the |
| 5 | | continuing appropriation authority provided in
Section 1.1 of |
| 6 | | the State Pension Funds Continuing Appropriation Act.
|
| 7 | | (b-2) Allocations from the Common School Fund apportioned |
| 8 | | to school
districts not coming under this System shall not be |
| 9 | | diminished or affected by
the provisions of this Article.
|
| 10 | | (b-3) For State fiscal years 2015 through 2045, the minimum |
| 11 | | contribution
to the System to be made by the State for each |
| 12 | | fiscal year shall be an amount
determined by the System to be |
| 13 | | sufficient to bring the total assets of the
System up to 100% |
| 14 | | of the total actuarial liabilities of the System by the end of
|
| 15 | | State fiscal year 2045. In making these determinations, the |
| 16 | | required State
contribution shall be calculated each year as a |
| 17 | | level percentage of payroll
over the years remaining to and |
| 18 | | including fiscal year 2045 and shall be
determined under the |
| 19 | | projected unit credit actuarial cost method. |
| 20 | | For State fiscal years 2012 through 2014 2045, the minimum |
| 21 | | contribution
to the System to be made by the State for each |
| 22 | | fiscal year shall be an amount
determined by the System to be |
| 23 | | sufficient to bring the total assets of the
System up to 90% of |
| 24 | | the total actuarial liabilities of the System by the end of
|
| 25 | | State fiscal year 2045. In making these determinations, the |
| 26 | | required State
contribution shall be calculated each year as a |
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| 1 | | level percentage of payroll
over the years remaining to and |
| 2 | | including fiscal year 2045 and shall be
determined under the |
| 3 | | projected unit credit actuarial cost method.
|
| 4 | | For State fiscal years 1996 through 2005, the State |
| 5 | | contribution to the
System, as a percentage of the applicable |
| 6 | | employee payroll, shall be increased
in equal annual increments |
| 7 | | so that by State fiscal year 2011, the State is
contributing at |
| 8 | | the rate required under this Section; except that in the
|
| 9 | | following specified State fiscal years, the State contribution |
| 10 | | to the System
shall not be less than the following indicated |
| 11 | | percentages of the applicable
employee payroll, even if the |
| 12 | | indicated percentage will produce a State
contribution in |
| 13 | | excess of the amount otherwise required under this subsection
|
| 14 | | and subsection (a), and notwithstanding any contrary |
| 15 | | certification made under
subsection (a-1) before the effective |
| 16 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
| 17 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
| 18 | | 2003; and
13.56% in FY 2004.
|
| 19 | | Notwithstanding any other provision of this Article, the |
| 20 | | total required State
contribution for State fiscal year 2006 is |
| 21 | | $534,627,700.
|
| 22 | | Notwithstanding any other provision of this Article, the |
| 23 | | total required State
contribution for State fiscal year 2007 is |
| 24 | | $738,014,500.
|
| 25 | | For each of State fiscal years 2008 through 2009, the State |
| 26 | | contribution to
the System, as a percentage of the applicable |
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| 1 | | employee payroll, shall be
increased in equal annual increments |
| 2 | | from the required State contribution for State fiscal year |
| 3 | | 2007, so that by State fiscal year 2011, the
State is |
| 4 | | contributing at the rate otherwise required under this Section.
|
| 5 | | Notwithstanding any other provision of this Article, the |
| 6 | | total required State contribution for State fiscal year 2010 is |
| 7 | | $2,089,268,000 and shall be made from the proceeds of bonds |
| 8 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
| 9 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
| 10 | | expenses determined by the System's share of total bond |
| 11 | | proceeds, (ii) any amounts received from the Common School Fund |
| 12 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
| 13 | | due to the issuance of discounted bonds, if applicable. |
| 14 | | Notwithstanding any other provision of this Article, the
|
| 15 | | total required State contribution for State fiscal year 2011 is
|
| 16 | | the amount recertified by the System on or before April 1, 2011 |
| 17 | | pursuant to subsection (a-1) of this Section and shall be made |
| 18 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
| 19 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
| 20 | | pro rata share of bond sale
expenses determined by the System's |
| 21 | | share of total bond
proceeds, (ii) any amounts received from |
| 22 | | the Common School Fund
in fiscal year 2011, and (iii) any |
| 23 | | reduction in bond proceeds
due to the issuance of discounted |
| 24 | | bonds, if applicable. This amount shall include, in addition to |
| 25 | | the amount certified by the System, an amount necessary to meet |
| 26 | | employer contributions required by the State as an employer |
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| 1 | | under paragraph (e) of this Section, which may also be used by |
| 2 | | the System for contributions required by paragraph (a) of |
| 3 | | Section 16-127. |
| 4 | | Beginning in State fiscal year 2046, the minimum State |
| 5 | | contribution for
each fiscal year shall be the amount needed to |
| 6 | | maintain the total assets of
the System at 90% of the total |
| 7 | | actuarial liabilities of the System.
|
| 8 | | Amounts received by the System pursuant to Section 25 of |
| 9 | | the Budget Stabilization Act or Section 8.12 of the State |
| 10 | | Finance Act in any fiscal year do not reduce and do not |
| 11 | | constitute payment of any portion of the minimum State |
| 12 | | contribution required under this Article in that fiscal year. |
| 13 | | Such amounts shall not reduce, and shall not be included in the |
| 14 | | calculation of, the required State contributions under this |
| 15 | | Article in any future year until the System has reached a |
| 16 | | funding ratio of at least 100% 90%. A reference in this Article |
| 17 | | to the "required State contribution" or any substantially |
| 18 | | similar term does not include or apply to any amounts payable |
| 19 | | to the System under Section 25 of the Budget Stabilization Act. |
| 20 | | Notwithstanding any other provision of this Code or the |
| 21 | | Budget Stabilization Act, amounts transferred to the System |
| 22 | | pursuant to the Budget Stabilization Act after the effective |
| 23 | | date of this amendatory Act of the 98th General Assembly do not |
| 24 | | reduce and do not constitute payment of any portion of the |
| 25 | | required State contribution under this Article in that fiscal |
| 26 | | year. Such amounts shall not reduce, and shall not be included |
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| 1 | | in the calculation of, the required State contributions under |
| 2 | | this Article in any future year until the System has received |
| 3 | | payment of contributions pursuant to the Budget Stabilization |
| 4 | | Act. |
| 5 | | Notwithstanding any other provision of this Section, the |
| 6 | | required State
contribution for State fiscal year 2005 and for |
| 7 | | fiscal year 2008 and each fiscal year thereafter through State |
| 8 | | fiscal year 2014, as
calculated under this Section and
|
| 9 | | certified under subsection (a-1), shall not exceed an amount |
| 10 | | equal to (i) the
amount of the required State contribution that |
| 11 | | would have been calculated under
this Section for that fiscal |
| 12 | | year if the System had not received any payments
under |
| 13 | | subsection (d) of Section 7.2 of the General Obligation Bond |
| 14 | | Act, minus
(ii) the portion of the State's total debt service |
| 15 | | payments for that fiscal
year on the bonds issued in fiscal |
| 16 | | year 2003 for the purposes of that Section 7.2, as determined
|
| 17 | | and certified by the Comptroller, that is the same as the |
| 18 | | System's portion of
the total moneys distributed under |
| 19 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
| 20 | | Act. In determining this maximum for State fiscal years 2008 |
| 21 | | through 2010, however, the amount referred to in item (i) shall |
| 22 | | be increased, as a percentage of the applicable employee |
| 23 | | payroll, in equal increments calculated from the sum of the |
| 24 | | required State contribution for State fiscal year 2007 plus the |
| 25 | | applicable portion of the State's total debt service payments |
| 26 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
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| 1 | | for the purposes of Section 7.2 of the General
Obligation Bond |
| 2 | | Act, so that, by State fiscal year 2011, the
State is |
| 3 | | contributing at the rate otherwise required under this Section.
|
| 4 | | (c) Payment of the required State contributions and of all |
| 5 | | pensions,
retirement annuities, death benefits, refunds, and |
| 6 | | other benefits granted
under or assumed by this System, and all |
| 7 | | expenses in connection with the
administration and operation |
| 8 | | thereof, are obligations of the State.
|
| 9 | | If members are paid from special trust or federal funds |
| 10 | | which are
administered by the employing unit, whether school |
| 11 | | district or other
unit, the employing unit shall pay to the |
| 12 | | System from such
funds the full accruing retirement costs based |
| 13 | | upon that
service, as determined by the System. Employer |
| 14 | | contributions, based on
salary paid to members from federal |
| 15 | | funds, may be forwarded by the distributing
agency of the State |
| 16 | | of Illinois to the System prior to allocation, in an
amount |
| 17 | | determined in accordance with guidelines established by such
|
| 18 | | agency and the System.
|
| 19 | | (d) Effective July 1, 1986, any employer of a teacher as |
| 20 | | defined in
paragraph (8) of Section 16-106 shall pay the |
| 21 | | employer's normal cost
of benefits based upon the teacher's |
| 22 | | service, in addition to
employee contributions, as determined |
| 23 | | by the System. Such employer
contributions shall be forwarded |
| 24 | | monthly in accordance with guidelines
established by the |
| 25 | | System.
|
| 26 | | However, with respect to benefits granted under Section |
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| 1 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
| 2 | | of Section 16-106, the
employer's contribution shall be 12% |
| 3 | | (rather than 20%) of the member's
highest annual salary rate |
| 4 | | for each year of creditable service granted, and
the employer |
| 5 | | shall also pay the required employee contribution on behalf of
|
| 6 | | the teacher. For the purposes of Sections 16-133.4 and |
| 7 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
| 8 | | 16-106 who is serving in that capacity
while on leave of |
| 9 | | absence from another employer under this Article shall not
be |
| 10 | | considered an employee of the employer from which the teacher |
| 11 | | is on leave.
|
| 12 | | (e) Beginning July 1, 1998, every employer of a teacher
|
| 13 | | shall pay to the System an employer contribution computed as |
| 14 | | follows:
|
| 15 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
| 16 | | employer
contribution shall be equal to 0.3% of each |
| 17 | | teacher's salary.
|
| 18 | | (2) Beginning July 1, 1999 and thereafter, the employer
|
| 19 | | contribution shall be equal to 0.58% of each teacher's |
| 20 | | salary.
|
| 21 | | The school district or other employing unit may pay these |
| 22 | | employer
contributions out of any source of funding available |
| 23 | | for that purpose and
shall forward the contributions to the |
| 24 | | System on the schedule established
for the payment of member |
| 25 | | contributions.
|
| 26 | | These employer contributions are intended to offset a |
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| 1 | | portion of the cost
to the System of the increases in |
| 2 | | retirement benefits resulting from this
amendatory Act of 1998.
|
| 3 | | Each employer of teachers is entitled to a credit against |
| 4 | | the contributions
required under this subsection (e) with |
| 5 | | respect to salaries paid to teachers
for the period January 1, |
| 6 | | 2002 through June 30, 2003, equal to the amount paid
by that |
| 7 | | employer under subsection (a-5) of Section 6.6 of the State |
| 8 | | Employees
Group Insurance Act of 1971 with respect to salaries |
| 9 | | paid to teachers for that
period.
|
| 10 | | The additional 1% employee contribution required under |
| 11 | | Section 16-152 by
this amendatory Act of 1998 is the |
| 12 | | responsibility of the teacher and not the
teacher's employer, |
| 13 | | unless the employer agrees, through collective bargaining
or |
| 14 | | otherwise, to make the contribution on behalf of the teacher.
|
| 15 | | If an employer is required by a contract in effect on May |
| 16 | | 1, 1998 between the
employer and an employee organization to |
| 17 | | pay, on behalf of all its full-time
employees
covered by this |
| 18 | | Article, all mandatory employee contributions required under
|
| 19 | | this Article, then the employer shall be excused from paying |
| 20 | | the employer
contribution required under this subsection (e) |
| 21 | | for the balance of the term
of that contract. The employer and |
| 22 | | the employee organization shall jointly
certify to the System |
| 23 | | the existence of the contractual requirement, in such
form as |
| 24 | | the System may prescribe. This exclusion shall cease upon the
|
| 25 | | termination, extension, or renewal of the contract at any time |
| 26 | | after May 1,
1998.
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| 1 | | (f) If the amount of a teacher's salary for any school year |
| 2 | | used to determine final average salary exceeds the member's |
| 3 | | annual full-time salary rate with the same employer for the |
| 4 | | previous school year by more than 6%, the teacher's employer |
| 5 | | shall pay to the System, in addition to all other payments |
| 6 | | required under this Section and in accordance with guidelines |
| 7 | | established by the System, the present value of the increase in |
| 8 | | benefits resulting from the portion of the increase in salary |
| 9 | | that is in excess of 6%. This present value shall be computed |
| 10 | | by the System on the basis of the actuarial assumptions and |
| 11 | | tables used in the most recent actuarial valuation of the |
| 12 | | System that is available at the time of the computation. If a |
| 13 | | teacher's salary for the 2005-2006 school year is used to |
| 14 | | determine final average salary under this subsection (f), then |
| 15 | | the changes made to this subsection (f) by Public Act 94-1057 |
| 16 | | shall apply in calculating whether the increase in his or her |
| 17 | | salary is in excess of 6%. For the purposes of this Section, |
| 18 | | change in employment under Section 10-21.12 of the School Code |
| 19 | | on or after June 1, 2005 shall constitute a change in employer. |
| 20 | | The System may require the employer to provide any pertinent |
| 21 | | information or documentation.
The changes made to this |
| 22 | | subsection (f) by this amendatory Act of the 94th General |
| 23 | | Assembly apply without regard to whether the teacher was in |
| 24 | | service on or after its effective date.
|
| 25 | | Whenever it determines that a payment is or may be required |
| 26 | | under this subsection, the System shall calculate the amount of |
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| 1 | | the payment and bill the employer for that amount. The bill |
| 2 | | shall specify the calculations used to determine the amount |
| 3 | | due. If the employer disputes the amount of the bill, it may, |
| 4 | | within 30 days after receipt of the bill, apply to the System |
| 5 | | in writing for a recalculation. The application must specify in |
| 6 | | detail the grounds of the dispute and, if the employer asserts |
| 7 | | that the calculation is subject to subsection (g) or (h) of |
| 8 | | this Section, must include an affidavit setting forth and |
| 9 | | attesting to all facts within the employer's knowledge that are |
| 10 | | pertinent to the applicability of that subsection. Upon |
| 11 | | receiving a timely application for recalculation, the System |
| 12 | | shall review the application and, if appropriate, recalculate |
| 13 | | the amount due.
|
| 14 | | The employer contributions required under this subsection |
| 15 | | (f) may be paid in the form of a lump sum within 90 days after |
| 16 | | receipt of the bill. If the employer contributions are not paid |
| 17 | | within 90 days after receipt of the bill, then interest will be |
| 18 | | charged at a rate equal to the System's annual actuarially |
| 19 | | assumed rate of return on investment compounded annually from |
| 20 | | the 91st day after receipt of the bill. Payments must be |
| 21 | | concluded within 3 years after the employer's receipt of the |
| 22 | | bill.
|
| 23 | | (g) This subsection (g) applies only to payments made or |
| 24 | | salary increases given on or after June 1, 2005 but before July |
| 25 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
| 26 | | require the System to refund any payments received before
July |
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| 1 | | 31, 2006 (the effective date of Public Act 94-1057). |
| 2 | | When assessing payment for any amount due under subsection |
| 3 | | (f), the System shall exclude salary increases paid to teachers |
| 4 | | under contracts or collective bargaining agreements entered |
| 5 | | into, amended, or renewed before June 1, 2005.
|
| 6 | | When assessing payment for any amount due under subsection |
| 7 | | (f), the System shall exclude salary increases paid to a |
| 8 | | teacher at a time when the teacher is 10 or more years from |
| 9 | | retirement eligibility under Section 16-132 or 16-133.2.
|
| 10 | | When assessing payment for any amount due under subsection |
| 11 | | (f), the System shall exclude salary increases resulting from |
| 12 | | overload work, including summer school, when the school |
| 13 | | district has certified to the System, and the System has |
| 14 | | approved the certification, that (i) the overload work is for |
| 15 | | the sole purpose of classroom instruction in excess of the |
| 16 | | standard number of classes for a full-time teacher in a school |
| 17 | | district during a school year and (ii) the salary increases are |
| 18 | | equal to or less than the rate of pay for classroom instruction |
| 19 | | computed on the teacher's current salary and work schedule.
|
| 20 | | When assessing payment for any amount due under subsection |
| 21 | | (f), the System shall exclude a salary increase resulting from |
| 22 | | a promotion (i) for which the employee is required to hold a |
| 23 | | certificate or supervisory endorsement issued by the State |
| 24 | | Teacher Certification Board that is a different certification |
| 25 | | or supervisory endorsement than is required for the teacher's |
| 26 | | previous position and (ii) to a position that has existed and |
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| 1 | | been filled by a member for no less than one complete academic |
| 2 | | year and the salary increase from the promotion is an increase |
| 3 | | that results in an amount no greater than the lesser of the |
| 4 | | average salary paid for other similar positions in the district |
| 5 | | requiring the same certification or the amount stipulated in |
| 6 | | the collective bargaining agreement for a similar position |
| 7 | | requiring the same certification.
|
| 8 | | When assessing payment for any amount due under subsection |
| 9 | | (f), the System shall exclude any payment to the teacher from |
| 10 | | the State of Illinois or the State Board of Education over |
| 11 | | which the employer does not have discretion, notwithstanding |
| 12 | | that the payment is included in the computation of final |
| 13 | | average salary.
|
| 14 | | (h) When assessing payment for any amount due under |
| 15 | | subsection (f), the System shall exclude any salary increase |
| 16 | | described in subsection (g) of this Section given on or after |
| 17 | | July 1, 2011 but before July 1, 2014 under a contract or |
| 18 | | collective bargaining agreement entered into, amended, or |
| 19 | | renewed on or after June 1, 2005 but before July 1, 2011. |
| 20 | | Notwithstanding any other provision of this Section, any |
| 21 | | payments made or salary increases given after June 30, 2014 |
| 22 | | shall be used in assessing payment for any amount due under |
| 23 | | subsection (f) of this Section.
|
| 24 | | (i) The System shall prepare a report and file copies of |
| 25 | | the report with the Governor and the General Assembly by |
| 26 | | January 1, 2007 that contains all of the following information: |
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| 1 | | (1) The number of recalculations required by the |
| 2 | | changes made to this Section by Public Act 94-1057 for each |
| 3 | | employer. |
| 4 | | (2) The dollar amount by which each employer's |
| 5 | | contribution to the System was changed due to |
| 6 | | recalculations required by Public Act 94-1057. |
| 7 | | (3) The total amount the System received from each |
| 8 | | employer as a result of the changes made to this Section by |
| 9 | | Public Act 94-4. |
| 10 | | (4) The increase in the required State contribution |
| 11 | | resulting from the changes made to this Section by Public |
| 12 | | Act 94-1057.
|
| 13 | | (j) For purposes of determining the required State |
| 14 | | contribution to the System, the value of the System's assets |
| 15 | | shall be equal to the actuarial value of the System's assets, |
| 16 | | which shall be calculated as follows: |
| 17 | | As of June 30, 2008, the actuarial value of the System's |
| 18 | | assets shall be equal to the market value of the assets as of |
| 19 | | that date. In determining the actuarial value of the System's |
| 20 | | assets for fiscal years after June 30, 2008, any actuarial |
| 21 | | gains or losses from investment return incurred in a fiscal |
| 22 | | year shall be recognized in equal annual amounts over the |
| 23 | | 5-year period following that fiscal year. |
| 24 | | (k) For purposes of determining the required State |
| 25 | | contribution to the system for a particular year, the actuarial |
| 26 | | value of assets shall be assumed to earn a rate of return equal |
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| 1 | | to the system's actuarially assumed rate of return. |
| 2 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
| 3 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
| 4 | | 6-18-12; 97-813, eff. 7-13-12.)
|
| 5 | | (40 ILCS 5/16-158.2 new) |
| 6 | | Sec. 16-158.2. Obligations of State; funding guarantee. |
| 7 | | Pursuant to Article XIII, Section 5 of the 1970 Constitution of |
| 8 | | the State of Illinois, beginning on July 1, 2013, the State |
| 9 | | shall, as a retirement benefit to each participant and |
| 10 | | annuitant of the System be contractually obligated to the |
| 11 | | System (as a fiduciary and trustee of the participants and |
| 12 | | annuitants) to pay the annual required State contribution, as |
| 13 | | determined by the Board of the System using generally accepted |
| 14 | | actuarial principles, as is necessary to bring the total assets |
| 15 | | of the System up to 100% of the total actuarial liabilities of |
| 16 | | the System by the end of State fiscal year 2045. As a further |
| 17 | | retirement benefit and contractual obligation, each fiscal |
| 18 | | year, the State shall pay to each designated retirement system |
| 19 | | the annual required State contribution certified by the Board |
| 20 | | for that fiscal year. Payments of the annual required State |
| 21 | | contribution for each fiscal year shall be made in equal |
| 22 | | monthly installments. Additionally, beginning in fiscal year |
| 23 | | 2014, State transfers to the Pension Stabilization Fund |
| 24 | | pursuant to Section 20 of the Budget Stabilization Act and |
| 25 | | payments to the System pursuant to Section 25 of the Budget |
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| 1 | | Stabilization Act shall be further retirement benefits and |
| 2 | | contractual obligations. The transfers and payments prescribed |
| 3 | | in Sections 20 and 25 of the Budget Stabilization Act shall not |
| 4 | | be used by the retirement system when calculation any pension |
| 5 | | payment until the System has reached a funded level of 100%. |
| 6 | | This Section and the security it provides to participants and |
| 7 | | annuitants is intended to be, and is, a contractual right that |
| 8 | | is part of the pension benefits provided to the participants |
| 9 | | and annuitants. Notwithstanding anything to the contrary in the |
| 10 | | Court of Claims Act or any other law, a designated retirement |
| 11 | | system has the exclusive right to and shall bring a mandamus |
| 12 | | action in the Circuit Court of Sangamon County against the |
| 13 | | State to compel the State to make any installment of the annual |
| 14 | | required State contribution required by this Section, |
| 15 | | irrespective of other remedies that may be available to the |
| 16 | | System. Each member or annuitant of the System has the right to |
| 17 | | in any judicial district in which the System maintains an |
| 18 | | office if the System fails to bring an action specified in this |
| 19 | | Section, irrespective of other remedies that may be available |
| 20 | | to the member or annuitant. In making these determinations, the |
| 21 | | required State contribution shall be calculated each year as a |
| 22 | | level percentage of payroll over the years remaining to and |
| 23 | | including fiscal year 2045 and shall be determined under the |
| 24 | | projected unit credit actuarial cost method.
|
| 25 | | Section 99. Effective date. This Act takes effect July 1, |
| 26 | | 2013.
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| | 1 | |
INDEX
| | 2 | |
Statutes amended in order of appearance
| | | 3 | | 30 ILCS 122/20 | | | | 4 | | 30 ILCS 122/25 | | | | 5 | | 40 ILCS 5/1-103.3 | | | | 6 | | 40 ILCS 5/2-105.1 new | | | | 7 | | 40 ILCS 5/2-105.2 new | | | | 8 | | 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 | | | 9 | | 40 ILCS 5/2-125 | from Ch. 108 1/2, par. 2-125 | | | 10 | | 40 ILCS 5/2-126 | from Ch. 108 1/2, par. 2-126 | | | 11 | | 40 ILCS 5/14-103.40 new | | | | 12 | | 40 ILCS 5/14-103.41 new | | | | 13 | | 40 ILCS 5/14-131 | | | | 14 | | 40 ILCS 5/14-132 | from Ch. 108 1/2, par. 14-132 | | | 15 | | 40 ILCS 5/14-133 | from Ch. 108 1/2, par. 14-133 | | | 16 | | 40 ILCS 5/15-107.1 new | | | | 17 | | 40 ILCS 5/15-107.2 new | | | | 18 | | 40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 | | | 19 | | 40 ILCS 5/15-155 | from Ch. 108 1/2, par. 15-155 | | | 20 | | 40 ILCS 5/15-156 | from Ch. 108 1/2, par. 15-156 | | | 21 | | 40 ILCS 5/15-157 | from Ch. 108 1/2, par. 15-157 | | | 22 | | 40 ILCS 5/16-106.4 new | | | | 23 | | 40 ILCS 5/16-106.5 new | | | | 24 | | 40 ILCS 5/16-133 | from Ch. 108 1/2, par. 16-133 | | | 25 | | 40 ILCS 5/16-152 | from Ch. 108 1/2, par. 16-152 | |
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