Bill Text: IL SB2739 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-17 - Rule 3-9(a) / Re-referred to Assignments [SB2739 Detail]

Download: Illinois-2023-SB2739-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2739

Introduced 1/12/2024, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:
40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134
40 ILCS 5/14-131
40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140

Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024.
LRB103 34580 RPS 64418 b

A BILL FOR

SB2739LRB103 34580 RPS 64418 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5changing Sections 2-134, 14-131, 15-165, 16-158, and 18-140 as
6follows:
7 (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
8 Sec. 2-134. To certify required State contributions and
9submit vouchers.
10 (a) The Board shall certify to the Governor on or before
11December 15 of each year until December 15, 2011 the amount of
12the required State contribution to the System for the next
13fiscal year and shall specifically identify the System's
14projected State normal cost for that fiscal year. The
15certification shall include a copy of the actuarial
16recommendations upon which it is based and shall specifically
17identify the System's projected State normal cost for that
18fiscal year.
19 On or before November 1 of each year, beginning November
201, 2012, the Board shall submit to the State Actuary, the
21Governor, and the General Assembly a proposed certification of
22the amount of the required State contribution to the System
23for the next fiscal year, along with all of the actuarial

SB2739- 2 -LRB103 34580 RPS 64418 b
1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or
8before January 15, 2013 and every January 15 thereafter, the
9Board shall certify to the Governor and the General Assembly
10the amount of the required State contribution for the next
11fiscal year. The Board's certification must note any
12deviations from the State Actuary's recommended changes, the
13reason or reasons for not following the State Actuary's
14recommended changes, and the fiscal impact of not following
15the State Actuary's recommended changes on the required State
16contribution.
17 On or before May 1, 2004, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2005, taking
20into account the amounts appropriated to and received by the
21System under subsection (d) of Section 7.2 of the General
22Obligation Bond Act.
23 On or before July 1, 2005, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2006, taking
26into account the changes in required State contributions made

SB2739- 3 -LRB103 34580 RPS 64418 b
1by this amendatory Act of the 94th General Assembly.
2 On or before April 1, 2011, the Board shall recalculate
3and recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2011,
5applying the changes made by Public Act 96-889 to the System's
6assets and liabilities as of June 30, 2009 as though Public Act
796-889 was approved on that date.
8 By November 1, 2017, the Board shall recalculate and
9recertify to the State Actuary, the Governor, and the General
10Assembly the amount of the State contribution to the System
11for State fiscal year 2018, taking into account the changes in
12required State contributions made by this amendatory Act of
13the 100th General Assembly. The State Actuary shall review the
14assumptions and valuations underlying the Board's revised
15certification and issue a preliminary report concerning the
16proposed recertification and identifying, if necessary,
17recommended changes in actuarial assumptions that the Board
18must consider before finalizing its certification of the
19required State contributions. The Board's final certification
20must note any deviations from the State Actuary's recommended
21changes, the reason or reasons for not following the State
22Actuary's recommended changes, and the fiscal impact of not
23following the State Actuary's recommended changes on the
24required State contribution.
25 (b) Unless otherwise directed by the Comptroller under
26subsection (b-1), Beginning in State fiscal year 1996, on or

SB2739- 4 -LRB103 34580 RPS 64418 b
1as soon as possible after the 15th day of each month the Board
2shall submit vouchers for payment of State contributions to
3the System for the applicable month on the 15th day of each
4month, or as soon thereafter as may be practicable. The amount
5vouchered for a monthly payment shall total , in a total
6monthly amount of one-twelfth of the required annual State
7contribution certified under subsection (a).
8 (b-1) Beginning in State fiscal year 2025, if the
9Comptroller requests that the Board submit, during a State
10fiscal year, vouchers for multiple monthly payments for
11advance payment of State contributions due to the System for
12that State fiscal year, then the Board shall submit those
13additional monthly vouchers as directed by the Comptroller,
14notwithstanding subsection (b). Unless an act of
15appropriations provides otherwise, nothing in this Section
16authorizes the Board to submit, in a State fiscal year,
17vouchers for the payment of State contributions to the System
18in an amount that exceeds the rate of payroll that is certified
19by the System under this Section for that State fiscal year.
20From the effective date of this amendatory Act of the 93rd
21General Assembly through June 30, 2004, the Board shall not
22submit vouchers for the remainder of fiscal year 2004 in
23excess of the fiscal year 2004 certified contribution amount
24determined under this Section after taking into consideration
25the transfer to the System under subsection (d) of Section
266z-61 of the State Finance Act.

SB2739- 5 -LRB103 34580 RPS 64418 b
1 (b-2) The These vouchers described in subsections (b) and
2(b-1) shall be paid by the State Comptroller and Treasurer by
3warrants drawn on the funds appropriated to the System for
4that fiscal year.
5 If in any month the amount remaining unexpended from all
6other appropriations to the System for the applicable fiscal
7year (including the appropriations to the System under Section
88.12 of the State Finance Act and Section 1 of the State
9Pension Funds Continuing Appropriation Act) is less than the
10amount lawfully vouchered under this Section, the difference
11shall be paid from the General Revenue Fund under the
12continuing appropriation authority provided in Section 1.1 of
13the State Pension Funds Continuing Appropriation Act.
14 (c) The full amount of any annual appropriation for the
15System for State fiscal year 1995 shall be transferred and
16made available to the System at the beginning of that fiscal
17year at the request of the Board. Any excess funds remaining at
18the end of any fiscal year from appropriations shall be
19retained by the System as a general reserve to meet the
20System's accrued liabilities.
21(Source: P.A. 100-23, eff. 7-6-17.)
22 (40 ILCS 5/14-131)
23 Sec. 14-131. Contributions by State.
24 (a) The State shall make contributions to the System by
25appropriations of amounts which, together with other employer

SB2739- 6 -LRB103 34580 RPS 64418 b
1contributions from trust, federal, and other funds, employee
2contributions, investment income, and other income, will be
3sufficient to meet the cost of maintaining and administering
4the System on a 90% funded basis in accordance with actuarial
5recommendations.
6 For the purposes of this Section and Section 14-135.08,
7references to State contributions refer only to employer
8contributions and do not include employee contributions that
9are picked up or otherwise paid by the State or a department on
10behalf of the employee.
11 (b) The Board shall determine the total amount of State
12contributions required for each fiscal year on the basis of
13the actuarial tables and other assumptions adopted by the
14Board, using the formula in subsection (e).
15 The Board shall also determine a State contribution rate
16for each fiscal year, expressed as a percentage of payroll,
17based on the total required State contribution for that fiscal
18year (less the amount received by the System from
19appropriations under Section 8.12 of the State Finance Act and
20Section 1 of the State Pension Funds Continuing Appropriation
21Act, if any, for the fiscal year ending on the June 30
22immediately preceding the applicable November 15 certification
23deadline), the estimated payroll (including all forms of
24compensation) for personal services rendered by eligible
25employees, and the recommendations of the actuary.
26 For the purposes of this Section and Section 14.1 of the

SB2739- 7 -LRB103 34580 RPS 64418 b
1State Finance Act, the term "eligible employees" includes
2employees who participate in the System, persons who may elect
3to participate in the System but have not so elected, persons
4who are serving a qualifying period that is required for
5participation, and annuitants employed by a department as
6described in subdivision (a)(1) or (a)(2) of Section 14-111.
7 (c) Contributions shall be made by the several departments
8for each pay period by warrants drawn by the State Comptroller
9against their respective funds or appropriations based upon
10vouchers stating the amount to be so contributed. These
11amounts shall be based on the full rate certified by the Board
12under Section 14-135.08 for that fiscal year. From March 5,
132004 (the effective date of Public Act 93-665) through the
14payment of the final payroll from fiscal year 2004
15appropriations, the several departments shall not make
16contributions for the remainder of fiscal year 2004 but shall
17instead make payments as required under subsection (a-1) of
18Section 14.1 of the State Finance Act. The several departments
19shall resume those contributions at the commencement of fiscal
20year 2005.
21 (c-1) Notwithstanding subsection (c) of this Section, for
22fiscal years 2010, 2012, and each fiscal year thereafter,
23contributions by the several departments are not required to
24be made for General Revenue Funds payrolls processed by the
25Comptroller. Payrolls paid by the several departments from all
26other State funds must continue to be processed pursuant to

SB2739- 8 -LRB103 34580 RPS 64418 b
1subsection (c) of this Section.
2 (c-2) Unless otherwise directed by the Comptroller under
3subsection (c-3), For State fiscal years 2010, 2012, and each
4fiscal year thereafter, on or as soon as possible after the
515th day of each month, the Board shall submit vouchers for
6payment of State contributions to the System for the
7applicable month on the 15th day of each month, or as soon
8thereafter as may be practicable. The amount vouchered for a
9monthly payment shall total , in a total monthly amount of
10one-twelfth of the fiscal year General Revenue Fund
11contribution as certified by the System pursuant to Section
1214-135.08 of this the Illinois Pension Code.
13 (c-3) Beginning in State fiscal year 2025, if the
14Comptroller requests that the Board submit, during a State
15fiscal year, vouchers for multiple monthly payments for
16advance payment of State contributions due to the System for
17that State fiscal year, then the Board shall submit those
18additional vouchers as directed by the Comptroller,
19notwithstanding subsection (c-2). Unless an act of
20appropriations provides otherwise, nothing in this Section
21authorizes the Board to submit, in a State fiscal year,
22vouchers for the payment of State contributions to the System
23in an amount that exceeds the rate of payroll that is certified
24by the System under Section 14-135.08 for that State fiscal
25year.
26 (d) If an employee is paid from trust funds or federal

SB2739- 9 -LRB103 34580 RPS 64418 b
1funds, the department or other employer shall pay employer
2contributions from those funds to the System at the certified
3rate, unless the terms of the trust or the federal-State
4agreement preclude the use of the funds for that purpose, in
5which case the required employer contributions shall be paid
6by the State.
7 (e) For State fiscal years 2012 through 2045, the minimum
8contribution to the System to be made by the State for each
9fiscal year shall be an amount determined by the System to be
10sufficient to bring the total assets of the System up to 90% of
11the total actuarial liabilities of the System by the end of
12State fiscal year 2045. In making these determinations, the
13required State contribution shall be calculated each year as a
14level percentage of payroll over the years remaining to and
15including fiscal year 2045 and shall be determined under the
16projected unit credit actuarial cost method.
17 A change in an actuarial or investment assumption that
18increases or decreases the required State contribution and
19first applies in State fiscal year 2018 or thereafter shall be
20implemented in equal annual amounts over a 5-year period
21beginning in the State fiscal year in which the actuarial
22change first applies to the required State contribution.
23 A change in an actuarial or investment assumption that
24increases or decreases the required State contribution and
25first applied to the State contribution in fiscal year 2014,
262015, 2016, or 2017 shall be implemented:

SB2739- 10 -LRB103 34580 RPS 64418 b
1 (i) as already applied in State fiscal years before
2 2018; and
3 (ii) in the portion of the 5-year period beginning in
4 the State fiscal year in which the actuarial change first
5 applied that occurs in State fiscal year 2018 or
6 thereafter, by calculating the change in equal annual
7 amounts over that 5-year period and then implementing it
8 at the resulting annual rate in each of the remaining
9 fiscal years in that 5-year period.
10 For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual
13increments so that by State fiscal year 2011, the State is
14contributing at the rate required under this Section; except
15that (i) for State fiscal year 1998, for all purposes of this
16Code and any other law of this State, the certified percentage
17of the applicable employee payroll shall be 5.052% for
18employees earning eligible creditable service under Section
1914-110 and 6.500% for all other employees, notwithstanding any
20contrary certification made under Section 14-135.08 before
21July 7, 1997 (the effective date of Public Act 90-65), and (ii)
22in the following specified State fiscal years, the State
23contribution to the System shall not be less than the
24following indicated percentages of the applicable employee
25payroll, even if the indicated percentage will produce a State
26contribution in excess of the amount otherwise required under

SB2739- 11 -LRB103 34580 RPS 64418 b
1this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
2FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
3and 10.8% in FY 2004.
4 Beginning in State fiscal year 2046, the minimum State
5contribution for each fiscal year shall be the amount needed
6to maintain the total assets of the System at 90% of the total
7actuarial liabilities of the System.
8 Amounts received by the System pursuant to Section 25 of
9the Budget Stabilization Act or Section 8.12 of the State
10Finance Act in any fiscal year do not reduce and do not
11constitute payment of any portion of the minimum State
12contribution required under this Article in that fiscal year.
13Such amounts shall not reduce, and shall not be included in the
14calculation of, the required State contributions under this
15Article in any future year until the System has reached a
16funding ratio of at least 90%. A reference in this Article to
17the "required State contribution" or any substantially similar
18term does not include or apply to any amounts payable to the
19System under Section 25 of the Budget Stabilization Act.
20 Notwithstanding any other provision of this Section, the
21required State contribution for State fiscal year 2005 and for
22fiscal year 2008 and each fiscal year thereafter, as
23calculated under this Section and certified under Section
2414-135.08, shall not exceed an amount equal to (i) the amount
25of the required State contribution that would have been
26calculated under this Section for that fiscal year if the

SB2739- 12 -LRB103 34580 RPS 64418 b
1System had not received any payments under subsection (d) of
2Section 7.2 of the General Obligation Bond Act, minus (ii) the
3portion of the State's total debt service payments for that
4fiscal year on the bonds issued in fiscal year 2003 for the
5purposes of that Section 7.2, as determined and certified by
6the Comptroller, that is the same as the System's portion of
7the total moneys distributed under subsection (d) of Section
87.2 of the General Obligation Bond Act.
9 (f) (Blank).
10 (g) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14 As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21 (h) For purposes of determining the required State
22contribution to the System for a particular year, the
23actuarial value of assets shall be assumed to earn a rate of
24return equal to the System's actuarially assumed rate of
25return.
26 (i) (Blank).

SB2739- 13 -LRB103 34580 RPS 64418 b
1 (j) (Blank).
2 (k) For fiscal year 2012 and each fiscal year thereafter,
3after the submission of all payments for eligible employees
4from personal services line items paid from the General
5Revenue Fund in the fiscal year have been made, the
6Comptroller shall provide to the System a certification of the
7sum of all expenditures in the fiscal year for personal
8services. Upon receipt of the certification, the System shall
9determine the amount due to the System based on the full rate
10certified by the Board under Section 14-135.08 for the fiscal
11year in order to meet the State's obligation under this
12Section. The System shall compare this amount due to the
13amount received by the System for the fiscal year. If the
14amount due is more than the amount received, the difference
15shall be termed the "Prior Fiscal Year Shortfall" for purposes
16of this Section, and the Prior Fiscal Year Shortfall shall be
17satisfied under Section 1.2 of the State Pension Funds
18Continuing Appropriation Act. If the amount due is less than
19the amount received, the difference shall be termed the "Prior
20Fiscal Year Overpayment" for purposes of this Section, and the
21Prior Fiscal Year Overpayment shall be repaid by the System to
22the General Revenue Fund as soon as practicable after the
23certification.
24(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
25101-10, eff. 6-5-19.)

SB2739- 14 -LRB103 34580 RPS 64418 b
1 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
2 Sec. 15-165. To certify amounts and submit vouchers.
3 (a) The Board shall certify to the Governor on or before
4November 15 of each year until November 15, 2011 the
5appropriation required from State funds for the purposes of
6this System for the following fiscal year. The certification
7under this subsection (a) shall include a copy of the
8actuarial recommendations upon which it is based and shall
9specifically identify the System's projected State normal cost
10for that fiscal year and the projected State cost for the
11self-managed plan for that fiscal year.
12 On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18 On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23 On or before April 1, 2011, the Board shall recalculate
24and recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011,
26applying the changes made by Public Act 96-889 to the System's

SB2739- 15 -LRB103 34580 RPS 64418 b
1assets and liabilities as of June 30, 2009 as though Public Act
296-889 was approved on that date.
3 (a-5) On or before November 1 of each year, beginning
4November 1, 2012, the Board shall submit to the State Actuary,
5the Governor, and the General Assembly a proposed
6certification of the amount of the required State contribution
7to the System for the next fiscal year, along with all of the
8actuarial assumptions, calculations, and data upon which that
9proposed certification is based. On or before January 1 of
10each year, beginning January 1, 2013, the State Actuary shall
11issue a preliminary report concerning the proposed
12certification and identifying, if necessary, recommended
13changes in actuarial assumptions that the Board must consider
14before finalizing its certification of the required State
15contributions. On or before January 15, 2013 and each January
1615 thereafter, the Board shall certify to the Governor and the
17General Assembly the amount of the required State contribution
18for the next fiscal year. The Board's certification must note,
19in a written response to the State Actuary, any deviations
20from the State Actuary's recommended changes, the reason or
21reasons for not following the State Actuary's recommended
22changes, and the fiscal impact of not following the State
23Actuary's recommended changes on the required State
24contribution.
25 (a-10) By November 1, 2017, the Board shall recalculate
26and recertify to the State Actuary, the Governor, and the

SB2739- 16 -LRB103 34580 RPS 64418 b
1General Assembly the amount of the State contribution to the
2System for State fiscal year 2018, taking into account the
3changes in required State contributions made by this
4amendatory Act of the 100th General Assembly. The State
5Actuary shall review the assumptions and valuations underlying
6the Board's revised certification and issue a preliminary
7report concerning the proposed recertification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions. The Board's
11final certification must note any deviations from the State
12Actuary's recommended changes, the reason or reasons for not
13following the State Actuary's recommended changes, and the
14fiscal impact of not following the State Actuary's recommended
15changes on the required State contribution.
16 (a-15) On or after June 15, 2019, but no later than June
1730, 2019, the Board shall recalculate and recertify to the
18Governor and the General Assembly the amount of the State
19contribution to the System for State fiscal year 2019, taking
20into account the changes in required State contributions made
21by this amendatory Act of the 100th General Assembly. The
22recalculation shall be made using assumptions adopted by the
23Board for the original fiscal year 2019 certification. The
24monthly voucher for the 12th month of fiscal year 2019 shall be
25paid by the Comptroller after the recertification required
26pursuant to this subsection is submitted to the Governor,

SB2739- 17 -LRB103 34580 RPS 64418 b
1Comptroller, and General Assembly. The recertification
2submitted to the General Assembly shall be filed with the
3Clerk of the House of Representatives and the Secretary of the
4Senate in electronic form only, in the manner that the Clerk
5and the Secretary shall direct.
6 (b) The Board shall certify to the State Comptroller or
7employer, as the case may be, from time to time, by its
8chairperson and secretary, with its seal attached, the amounts
9payable to the System from the various funds.
10 (c) Unless otherwise directed by the Comptroller under
11subsection (c-1), Beginning in State fiscal year 1996, on or
12as soon as possible after the 15th day of each month the Board
13shall submit vouchers for payment of State contributions to
14the System for the applicable month on the 15th day of each
15month, or as soon thereafter as may be practicable. The amount
16vouchered for a monthly payment shall total , in a total
17monthly amount of one-twelfth of the required annual State
18contribution certified under subsection (a).
19 (c-1) Beginning in State fiscal year 2025, if the
20Comptroller requests that the Board submit, during a State
21fiscal year, vouchers for multiple monthly payments for
22advance payment of State contributions due to the System for
23that State fiscal year, then the Board shall submit those
24additional vouchers as directed by the Comptroller,
25notwithstanding subsection (c). Unless an act of
26appropriations provides otherwise, nothing in this Section

SB2739- 18 -LRB103 34580 RPS 64418 b
1authorizes the Board to submit, in a State fiscal year,
2vouchers for the payment of State contributions to the System
3in an amount that exceeds the annual certified contribution
4for the System under this Section for that State fiscal year.
5From the effective date of this amendatory Act of the 93rd
6General Assembly through June 30, 2004, the Board shall not
7submit vouchers for the remainder of fiscal year 2004 in
8excess of the fiscal year 2004 certified contribution amount
9determined under this Section after taking into consideration
10the transfer to the System under subsection (b) of Section
116z-61 of the State Finance Act.
12 (c-2) The These vouchers described in subsections (c) and
13(c-1) shall be paid by the State Comptroller and Treasurer by
14warrants drawn on the funds appropriated to the System for
15that fiscal year.
16 If in any month the amount remaining unexpended from all
17other appropriations to the System for the applicable fiscal
18year (including the appropriations to the System under Section
198.12 of the State Finance Act and Section 1 of the State
20Pension Funds Continuing Appropriation Act) is less than the
21amount lawfully vouchered under this Section, the difference
22shall be paid from the General Revenue Fund under the
23continuing appropriation authority provided in Section 1.1 of
24the State Pension Funds Continuing Appropriation Act.
25 (d) So long as the payments received are the full amount
26lawfully vouchered under this Section, payments received by

SB2739- 19 -LRB103 34580 RPS 64418 b
1the System under this Section shall be applied first toward
2the employer contribution to the self-managed plan established
3under Section 15-158.2. Payments shall be applied second
4toward the employer's portion of the normal costs of the
5System, as defined in subsection (f) of Section 15-155. The
6balance shall be applied toward the unfunded actuarial
7liabilities of the System.
8 (e) In the event that the System does not receive, as a
9result of legislative enactment or otherwise, payments
10sufficient to fully fund the employer contribution to the
11self-managed plan established under Section 15-158.2 and to
12fully fund that portion of the employer's portion of the
13normal costs of the System, as calculated in accordance with
14Section 15-155(a-1), then any payments received shall be
15applied proportionately to the optional retirement program
16established under Section 15-158.2 and to the employer's
17portion of the normal costs of the System, as calculated in
18accordance with Section 15-155(a-1).
19(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
20 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
21 Sec. 16-158. Contributions by State and other employing
22units.
23 (a) The State shall make contributions to the System by
24means of appropriations from the Common School Fund and other
25State funds of amounts which, together with other employer

SB2739- 20 -LRB103 34580 RPS 64418 b
1contributions, employee contributions, investment income, and
2other income, will be sufficient to meet the cost of
3maintaining and administering the System on a 90% funded basis
4in accordance with actuarial recommendations.
5 The Board shall determine the amount of State
6contributions required for each fiscal year on the basis of
7the actuarial tables and other assumptions adopted by the
8Board and the recommendations of the actuary, using the
9formula in subsection (b-3).
10 (a-1) Annually, on or before November 15 until November
1115, 2011, the Board shall certify to the Governor the amount of
12the required State contribution for the coming fiscal year.
13The certification under this subsection (a-1) shall include a
14copy of the actuarial recommendations upon which it is based
15and shall specifically identify the System's projected State
16normal cost for that fiscal year.
17 On or before May 1, 2004, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2005, taking
20into account the amounts appropriated to and received by the
21System under subsection (d) of Section 7.2 of the General
22Obligation Bond Act.
23 On or before July 1, 2005, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2006, taking
26into account the changes in required State contributions made

SB2739- 21 -LRB103 34580 RPS 64418 b
1by Public Act 94-4.
2 On or before April 1, 2011, the Board shall recalculate
3and recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2011,
5applying the changes made by Public Act 96-889 to the System's
6assets and liabilities as of June 30, 2009 as though Public Act
796-889 was approved on that date.
8 (a-5) On or before November 1 of each year, beginning
9November 1, 2012, the Board shall submit to the State Actuary,
10the Governor, and the General Assembly a proposed
11certification of the amount of the required State contribution
12to the System for the next fiscal year, along with all of the
13actuarial assumptions, calculations, and data upon which that
14proposed certification is based. On or before January 1 of
15each year, beginning January 1, 2013, the State Actuary shall
16issue a preliminary report concerning the proposed
17certification and identifying, if necessary, recommended
18changes in actuarial assumptions that the Board must consider
19before finalizing its certification of the required State
20contributions. On or before January 15, 2013 and each January
2115 thereafter, the Board shall certify to the Governor and the
22General Assembly the amount of the required State contribution
23for the next fiscal year. The Board's certification must note
24any deviations from the State Actuary's recommended changes,
25the reason or reasons for not following the State Actuary's
26recommended changes, and the fiscal impact of not following

SB2739- 22 -LRB103 34580 RPS 64418 b
1the State Actuary's recommended changes on the required State
2contribution.
3 (a-10) By November 1, 2017, the Board shall recalculate
4and recertify to the State Actuary, the Governor, and the
5General Assembly the amount of the State contribution to the
6System for State fiscal year 2018, taking into account the
7changes in required State contributions made by Public Act
8100-23. The State Actuary shall review the assumptions and
9valuations underlying the Board's revised certification and
10issue a preliminary report concerning the proposed
11recertification and identifying, if necessary, recommended
12changes in actuarial assumptions that the Board must consider
13before finalizing its certification of the required State
14contributions. The Board's final certification must note any
15deviations from the State Actuary's recommended changes, the
16reason or reasons for not following the State Actuary's
17recommended changes, and the fiscal impact of not following
18the State Actuary's recommended changes on the required State
19contribution.
20 (a-15) On or after June 15, 2019, but no later than June
2130, 2019, the Board shall recalculate and recertify to the
22Governor and the General Assembly the amount of the State
23contribution to the System for State fiscal year 2019, taking
24into account the changes in required State contributions made
25by Public Act 100-587. The recalculation shall be made using
26assumptions adopted by the Board for the original fiscal year

SB2739- 23 -LRB103 34580 RPS 64418 b
12019 certification. The monthly voucher for the 12th month of
2fiscal year 2019 shall be paid by the Comptroller after the
3recertification required pursuant to this subsection is
4submitted to the Governor, Comptroller, and General Assembly.
5The recertification submitted to the General Assembly shall be
6filed with the Clerk of the House of Representatives and the
7Secretary of the Senate in electronic form only, in the manner
8that the Clerk and the Secretary shall direct.
9 (b) Through State fiscal year 1995, the State
10contributions shall be paid to the System in accordance with
11Section 18-7 of the School Code.
12 (b-1) Unless otherwise directed by the Comptroller under
13subsection (b-1.1), Beginning in State fiscal year 1996, on
14the 15th day of each month, or as soon thereafter as may be
15practicable, the Board shall submit vouchers for payment of
16State contributions to the System for the applicable month on
17the 15th day of each month, or as soon thereafter as may be
18practicable. The amount vouchered for a monthly payment shall
19total , in a total monthly amount of one-twelfth of the
20required annual State contribution certified under subsection
21(a-1).
22 (b-1.1) Beginning in State fiscal year 2025, if the
23Comptroller requests that the Board submit, during a State
24fiscal year, vouchers for multiple monthly payments for the
25advance payment of State contributions due to the System for
26that State fiscal year, then the Board shall submit those

SB2739- 24 -LRB103 34580 RPS 64418 b
1additional vouchers as directed by the Comptroller,
2notwithstanding subsection (b-1). Unless an act of
3appropriations provides otherwise, nothing in this Section
4authorizes the Board to submit, in a State fiscal year,
5vouchers for the payment of State contributions to the System
6in an amount that exceeds the rate of payroll that is certified
7by the System under this Section for that State fiscal year.
8From March 5, 2004 (the effective date of Public Act 93-665)
9through June 30, 2004, the Board shall not submit vouchers for
10the remainder of fiscal year 2004 in excess of the fiscal year
112004 certified contribution amount determined under this
12Section after taking into consideration the transfer to the
13System under subsection (a) of Section 6z-61 of the State
14Finance Act.
15 (b-1.2) The These vouchers described in subsections (b-1)
16and (b-1.1) shall be paid by the State Comptroller and
17Treasurer by warrants drawn on the funds appropriated to the
18System for that fiscal year.
19 If in any month the amount remaining unexpended from all
20other appropriations to the System for the applicable fiscal
21year (including the appropriations to the System under Section
228.12 of the State Finance Act and Section 1 of the State
23Pension Funds Continuing Appropriation Act) is less than the
24amount lawfully vouchered under this subsection, the
25difference shall be paid from the Common School Fund under the
26continuing appropriation authority provided in Section 1.1 of

SB2739- 25 -LRB103 34580 RPS 64418 b
1the State Pension Funds Continuing Appropriation Act.
2 (b-2) Allocations from the Common School Fund apportioned
3to school districts not coming under this System shall not be
4diminished or affected by the provisions of this Article.
5 (b-3) For State fiscal years 2012 through 2045, the
6minimum contribution to the System to be made by the State for
7each fiscal year shall be an amount determined by the System to
8be sufficient to bring the total assets of the System up to 90%
9of the total actuarial liabilities of the System by the end of
10State fiscal year 2045. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of payroll over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15 For each of State fiscal years 2018, 2019, and 2020, the
16State shall make an additional contribution to the System
17equal to 2% of the total payroll of each employee who is deemed
18to have elected the benefits under Section 1-161 or who has
19made the election under subsection (c) of Section 1-161.
20 A change in an actuarial or investment assumption that
21increases or decreases the required State contribution and
22first applies in State fiscal year 2018 or thereafter shall be
23implemented in equal annual amounts over a 5-year period
24beginning in the State fiscal year in which the actuarial
25change first applies to the required State contribution.
26 A change in an actuarial or investment assumption that

SB2739- 26 -LRB103 34580 RPS 64418 b
1increases or decreases the required State contribution and
2first applied to the State contribution in fiscal year 2014,
32015, 2016, or 2017 shall be implemented:
4 (i) as already applied in State fiscal years before
5 2018; and
6 (ii) in the portion of the 5-year period beginning in
7 the State fiscal year in which the actuarial change first
8 applied that occurs in State fiscal year 2018 or
9 thereafter, by calculating the change in equal annual
10 amounts over that 5-year period and then implementing it
11 at the resulting annual rate in each of the remaining
12 fiscal years in that 5-year period.
13 For State fiscal years 1996 through 2005, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual
16increments so that by State fiscal year 2011, the State is
17contributing at the rate required under this Section; except
18that in the following specified State fiscal years, the State
19contribution to the System shall not be less than the
20following indicated percentages of the applicable employee
21payroll, even if the indicated percentage will produce a State
22contribution in excess of the amount otherwise required under
23this subsection and subsection (a), and notwithstanding any
24contrary certification made under subsection (a-1) before May
2527, 1998 (the effective date of Public Act 90-582): 10.02% in
26FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY

SB2739- 27 -LRB103 34580 RPS 64418 b
12002; 12.86% in FY 2003; and 13.56% in FY 2004.
2 Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2006
4is $534,627,700.
5 Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2007
7is $738,014,500.
8 For each of State fiscal years 2008 through 2009, the
9State contribution to the System, as a percentage of the
10applicable employee payroll, shall be increased in equal
11annual increments from the required State contribution for
12State fiscal year 2007, so that by State fiscal year 2011, the
13State is contributing at the rate otherwise required under
14this Section.
15 Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2010
17is $2,089,268,000 and shall be made from the proceeds of bonds
18sold in fiscal year 2010 pursuant to Section 7.2 of the General
19Obligation Bond Act, less (i) the pro rata share of bond sale
20expenses determined by the System's share of total bond
21proceeds, (ii) any amounts received from the Common School
22Fund in fiscal year 2010, and (iii) any reduction in bond
23proceeds due to the issuance of discounted bonds, if
24applicable.
25 Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2011

SB2739- 28 -LRB103 34580 RPS 64418 b
1is the amount recertified by the System on or before April 1,
22011 pursuant to subsection (a-1) of this Section and shall be
3made from the proceeds of bonds sold in fiscal year 2011
4pursuant to Section 7.2 of the General Obligation Bond Act,
5less (i) the pro rata share of bond sale expenses determined by
6the System's share of total bond proceeds, (ii) any amounts
7received from the Common School Fund in fiscal year 2011, and
8(iii) any reduction in bond proceeds due to the issuance of
9discounted bonds, if applicable. This amount shall include, in
10addition to the amount certified by the System, an amount
11necessary to meet employer contributions required by the State
12as an employer under paragraph (e) of this Section, which may
13also be used by the System for contributions required by
14paragraph (a) of Section 16-127.
15 Beginning in State fiscal year 2046, the minimum State
16contribution for each fiscal year shall be the amount needed
17to maintain the total assets of the System at 90% of the total
18actuarial liabilities of the System.
19 Amounts received by the System pursuant to Section 25 of
20the Budget Stabilization Act or Section 8.12 of the State
21Finance Act in any fiscal year do not reduce and do not
22constitute payment of any portion of the minimum State
23contribution required under this Article in that fiscal year.
24Such amounts shall not reduce, and shall not be included in the
25calculation of, the required State contributions under this
26Article in any future year until the System has reached a

SB2739- 29 -LRB103 34580 RPS 64418 b
1funding ratio of at least 90%. A reference in this Article to
2the "required State contribution" or any substantially similar
3term does not include or apply to any amounts payable to the
4System under Section 25 of the Budget Stabilization Act.
5 Notwithstanding any other provision of this Section, the
6required State contribution for State fiscal year 2005 and for
7fiscal year 2008 and each fiscal year thereafter, as
8calculated under this Section and certified under subsection
9(a-1), shall not exceed an amount equal to (i) the amount of
10the required State contribution that would have been
11calculated under this Section for that fiscal year if the
12System had not received any payments under subsection (d) of
13Section 7.2 of the General Obligation Bond Act, minus (ii) the
14portion of the State's total debt service payments for that
15fiscal year on the bonds issued in fiscal year 2003 for the
16purposes of that Section 7.2, as determined and certified by
17the Comptroller, that is the same as the System's portion of
18the total moneys distributed under subsection (d) of Section
197.2 of the General Obligation Bond Act. In determining this
20maximum for State fiscal years 2008 through 2010, however, the
21amount referred to in item (i) shall be increased, as a
22percentage of the applicable employee payroll, in equal
23increments calculated from the sum of the required State
24contribution for State fiscal year 2007 plus the applicable
25portion of the State's total debt service payments for fiscal
26year 2007 on the bonds issued in fiscal year 2003 for the

SB2739- 30 -LRB103 34580 RPS 64418 b
1purposes of Section 7.2 of the General Obligation Bond Act, so
2that, by State fiscal year 2011, the State is contributing at
3the rate otherwise required under this Section.
4 (b-4) Beginning in fiscal year 2018, each employer under
5this Article shall pay to the System a required contribution
6determined as a percentage of projected payroll and sufficient
7to produce an annual amount equal to:
8 (i) for each of fiscal years 2018, 2019, and 2020, the
9 defined benefit normal cost of the defined benefit plan,
10 less the employee contribution, for each employee of that
11 employer who has elected or who is deemed to have elected
12 the benefits under Section 1-161 or who has made the
13 election under subsection (b) of Section 1-161; for fiscal
14 year 2021 and each fiscal year thereafter, the defined
15 benefit normal cost of the defined benefit plan, less the
16 employee contribution, plus 2%, for each employee of that
17 employer who has elected or who is deemed to have elected
18 the benefits under Section 1-161 or who has made the
19 election under subsection (b) of Section 1-161; plus
20 (ii) the amount required for that fiscal year to
21 amortize any unfunded actuarial accrued liability
22 associated with the present value of liabilities
23 attributable to the employer's account under Section
24 16-158.3, determined as a level percentage of payroll over
25 a 30-year rolling amortization period.
26 In determining contributions required under item (i) of

SB2739- 31 -LRB103 34580 RPS 64418 b
1this subsection, the System shall determine an aggregate rate
2for all employers, expressed as a percentage of projected
3payroll.
4 In determining the contributions required under item (ii)
5of this subsection, the amount shall be computed by the System
6on the basis of the actuarial assumptions and tables used in
7the most recent actuarial valuation of the System that is
8available at the time of the computation.
9 The contributions required under this subsection (b-4)
10shall be paid by an employer concurrently with that employer's
11payroll payment period. The State, as the actual employer of
12an employee, shall make the required contributions under this
13subsection.
14 (c) Payment of the required State contributions and of all
15pensions, retirement annuities, death benefits, refunds, and
16other benefits granted under or assumed by this System, and
17all expenses in connection with the administration and
18operation thereof, are obligations of the State.
19 If members are paid from special trust or federal funds
20which are administered by the employing unit, whether school
21district or other unit, the employing unit shall pay to the
22System from such funds the full accruing retirement costs
23based upon that service, which, beginning July 1, 2017, shall
24be at a rate, expressed as a percentage of salary, equal to the
25total employer's normal cost, expressed as a percentage of
26payroll, as determined by the System. Employer contributions,

SB2739- 32 -LRB103 34580 RPS 64418 b
1based on salary paid to members from federal funds, may be
2forwarded by the distributing agency of the State of Illinois
3to the System prior to allocation, in an amount determined in
4accordance with guidelines established by such agency and the
5System. Any contribution for fiscal year 2015 collected as a
6result of the change made by Public Act 98-674 shall be
7considered a State contribution under subsection (b-3) of this
8Section.
9 (d) Effective July 1, 1986, any employer of a teacher as
10defined in paragraph (8) of Section 16-106 shall pay the
11employer's normal cost of benefits based upon the teacher's
12service, in addition to employee contributions, as determined
13by the System. Such employer contributions shall be forwarded
14monthly in accordance with guidelines established by the
15System.
16 However, with respect to benefits granted under Section
1716-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
18of Section 16-106, the employer's contribution shall be 12%
19(rather than 20%) of the member's highest annual salary rate
20for each year of creditable service granted, and the employer
21shall also pay the required employee contribution on behalf of
22the teacher. For the purposes of Sections 16-133.4 and
2316-133.5, a teacher as defined in paragraph (8) of Section
2416-106 who is serving in that capacity while on leave of
25absence from another employer under this Article shall not be
26considered an employee of the employer from which the teacher

SB2739- 33 -LRB103 34580 RPS 64418 b
1is on leave.
2 (e) Beginning July 1, 1998, every employer of a teacher
3shall pay to the System an employer contribution computed as
4follows:
5 (1) Beginning July 1, 1998 through June 30, 1999, the
6 employer contribution shall be equal to 0.3% of each
7 teacher's salary.
8 (2) Beginning July 1, 1999 and thereafter, the
9 employer contribution shall be equal to 0.58% of each
10 teacher's salary.
11The school district or other employing unit may pay these
12employer contributions out of any source of funding available
13for that purpose and shall forward the contributions to the
14System on the schedule established for the payment of member
15contributions.
16 These employer contributions are intended to offset a
17portion of the cost to the System of the increases in
18retirement benefits resulting from Public Act 90-582.
19 Each employer of teachers is entitled to a credit against
20the contributions required under this subsection (e) with
21respect to salaries paid to teachers for the period January 1,
222002 through June 30, 2003, equal to the amount paid by that
23employer under subsection (a-5) of Section 6.6 of the State
24Employees Group Insurance Act of 1971 with respect to salaries
25paid to teachers for that period.
26 The additional 1% employee contribution required under

SB2739- 34 -LRB103 34580 RPS 64418 b
1Section 16-152 by Public Act 90-582 is the responsibility of
2the teacher and not the teacher's employer, unless the
3employer agrees, through collective bargaining or otherwise,
4to make the contribution on behalf of the teacher.
5 If an employer is required by a contract in effect on May
61, 1998 between the employer and an employee organization to
7pay, on behalf of all its full-time employees covered by this
8Article, all mandatory employee contributions required under
9this Article, then the employer shall be excused from paying
10the employer contribution required under this subsection (e)
11for the balance of the term of that contract. The employer and
12the employee organization shall jointly certify to the System
13the existence of the contractual requirement, in such form as
14the System may prescribe. This exclusion shall cease upon the
15termination, extension, or renewal of the contract at any time
16after May 1, 1998.
17 (f) If the amount of a teacher's salary for any school year
18used to determine final average salary exceeds the member's
19annual full-time salary rate with the same employer for the
20previous school year by more than 6%, the teacher's employer
21shall pay to the System, in addition to all other payments
22required under this Section and in accordance with guidelines
23established by the System, the present value of the increase
24in benefits resulting from the portion of the increase in
25salary that is in excess of 6%. This present value shall be
26computed by the System on the basis of the actuarial

SB2739- 35 -LRB103 34580 RPS 64418 b
1assumptions and tables used in the most recent actuarial
2valuation of the System that is available at the time of the
3computation. If a teacher's salary for the 2005-2006 school
4year is used to determine final average salary under this
5subsection (f), then the changes made to this subsection (f)
6by Public Act 94-1057 shall apply in calculating whether the
7increase in his or her salary is in excess of 6%. For the
8purposes of this Section, change in employment under Section
910-21.12 of the School Code on or after June 1, 2005 shall
10constitute a change in employer. The System may require the
11employer to provide any pertinent information or
12documentation. The changes made to this subsection (f) by
13Public Act 94-1111 apply without regard to whether the teacher
14was in service on or after its effective date.
15 Whenever it determines that a payment is or may be
16required under this subsection, the System shall calculate the
17amount of the payment and bill the employer for that amount.
18The bill shall specify the calculations used to determine the
19amount due. If the employer disputes the amount of the bill, it
20may, within 30 days after receipt of the bill, apply to the
21System in writing for a recalculation. The application must
22specify in detail the grounds of the dispute and, if the
23employer asserts that the calculation is subject to subsection
24(g), (g-5), (g-10), (g-15), or (h) of this Section, must
25include an affidavit setting forth and attesting to all facts
26within the employer's knowledge that are pertinent to the

SB2739- 36 -LRB103 34580 RPS 64418 b
1applicability of that subsection. Upon receiving a timely
2application for recalculation, the System shall review the
3application and, if appropriate, recalculate the amount due.
4 The employer contributions required under this subsection
5(f) may be paid in the form of a lump sum within 90 days after
6receipt of the bill. If the employer contributions are not
7paid within 90 days after receipt of the bill, then interest
8will be charged at a rate equal to the System's annual
9actuarially assumed rate of return on investment compounded
10annually from the 91st day after receipt of the bill. Payments
11must be concluded within 3 years after the employer's receipt
12of the bill.
13 (f-1) (Blank).
14 (g) This subsection (g) applies only to payments made or
15salary increases given on or after June 1, 2005 but before July
161, 2011. The changes made by Public Act 94-1057 shall not
17require the System to refund any payments received before July
1831, 2006 (the effective date of Public Act 94-1057).
19 When assessing payment for any amount due under subsection
20(f), the System shall exclude salary increases paid to
21teachers under contracts or collective bargaining agreements
22entered into, amended, or renewed before June 1, 2005.
23 When assessing payment for any amount due under subsection
24(f), the System shall exclude salary increases paid to a
25teacher at a time when the teacher is 10 or more years from
26retirement eligibility under Section 16-132 or 16-133.2.

SB2739- 37 -LRB103 34580 RPS 64418 b
1 When assessing payment for any amount due under subsection
2(f), the System shall exclude salary increases resulting from
3overload work, including summer school, when the school
4district has certified to the System, and the System has
5approved the certification, that (i) the overload work is for
6the sole purpose of classroom instruction in excess of the
7standard number of classes for a full-time teacher in a school
8district during a school year and (ii) the salary increases
9are equal to or less than the rate of pay for classroom
10instruction computed on the teacher's current salary and work
11schedule.
12 When assessing payment for any amount due under subsection
13(f), the System shall exclude a salary increase resulting from
14a promotion (i) for which the employee is required to hold a
15certificate or supervisory endorsement issued by the State
16Teacher Certification Board that is a different certification
17or supervisory endorsement than is required for the teacher's
18previous position and (ii) to a position that has existed and
19been filled by a member for no less than one complete academic
20year and the salary increase from the promotion is an increase
21that results in an amount no greater than the lesser of the
22average salary paid for other similar positions in the
23district requiring the same certification or the amount
24stipulated in the collective bargaining agreement for a
25similar position requiring the same certification.
26 When assessing payment for any amount due under subsection

SB2739- 38 -LRB103 34580 RPS 64418 b
1(f), the System shall exclude any payment to the teacher from
2the State of Illinois or the State Board of Education over
3which the employer does not have discretion, notwithstanding
4that the payment is included in the computation of final
5average salary.
6 (g-5) When assessing payment for any amount due under
7subsection (f), the System shall exclude salary increases
8resulting from overload or stipend work performed in a school
9year subsequent to a school year in which the employer was
10unable to offer or allow to be conducted overload or stipend
11work due to an emergency declaration limiting such activities.
12 (g-10) When assessing payment for any amount due under
13subsection (f), the System shall exclude salary increases
14resulting from increased instructional time that exceeded the
15instructional time required during the 2019-2020 school year.
16 (g-15) When assessing payment for any amount due under
17subsection (f), the System shall exclude salary increases
18resulting from teaching summer school on or after May 1, 2021
19and before September 15, 2022.
20 (h) When assessing payment for any amount due under
21subsection (f), the System shall exclude any salary increase
22described in subsection (g) of this Section given on or after
23July 1, 2011 but before July 1, 2014 under a contract or
24collective bargaining agreement entered into, amended, or
25renewed on or after June 1, 2005 but before July 1, 2011.
26Notwithstanding any other provision of this Section, any

SB2739- 39 -LRB103 34580 RPS 64418 b
1payments made or salary increases given after June 30, 2014
2shall be used in assessing payment for any amount due under
3subsection (f) of this Section.
4 (i) The System shall prepare a report and file copies of
5the report with the Governor and the General Assembly by
6January 1, 2007 that contains all of the following
7information:
8 (1) The number of recalculations required by the
9 changes made to this Section by Public Act 94-1057 for
10 each employer.
11 (2) The dollar amount by which each employer's
12 contribution to the System was changed due to
13 recalculations required by Public Act 94-1057.
14 (3) The total amount the System received from each
15 employer as a result of the changes made to this Section by
16 Public Act 94-4.
17 (4) The increase in the required State contribution
18 resulting from the changes made to this Section by Public
19 Act 94-1057.
20 (i-5) For school years beginning on or after July 1, 2017,
21if the amount of a participant's salary for any school year
22exceeds the amount of the salary set for the Governor, the
23participant's employer shall pay to the System, in addition to
24all other payments required under this Section and in
25accordance with guidelines established by the System, an
26amount determined by the System to be equal to the employer

SB2739- 40 -LRB103 34580 RPS 64418 b
1normal cost, as established by the System and expressed as a
2total percentage of payroll, multiplied by the amount of
3salary in excess of the amount of the salary set for the
4Governor. This amount shall be computed by the System on the
5basis of the actuarial assumptions and tables used in the most
6recent actuarial valuation of the System that is available at
7the time of the computation. The System may require the
8employer to provide any pertinent information or
9documentation.
10 Whenever it determines that a payment is or may be
11required under this subsection, the System shall calculate the
12amount of the payment and bill the employer for that amount.
13The bill shall specify the calculations used to determine the
14amount due. If the employer disputes the amount of the bill, it
15may, within 30 days after receipt of the bill, apply to the
16System in writing for a recalculation. The application must
17specify in detail the grounds of the dispute. Upon receiving a
18timely application for recalculation, the System shall review
19the application and, if appropriate, recalculate the amount
20due.
21 The employer contributions required under this subsection
22may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not
24paid within 90 days after receipt of the bill, then interest
25will be charged at a rate equal to the System's annual
26actuarially assumed rate of return on investment compounded

SB2739- 41 -LRB103 34580 RPS 64418 b
1annually from the 91st day after receipt of the bill. Payments
2must be concluded within 3 years after the employer's receipt
3of the bill.
4 (j) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8 As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15 (k) For purposes of determining the required State
16contribution to the system for a particular year, the
17actuarial value of assets shall be assumed to earn a rate of
18return equal to the system's actuarially assumed rate of
19return.
20(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
21102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff.
228-20-21; 102-813, eff. 5-13-22.)
23 (40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
24 Sec. 18-140. To certify required State contributions and
25submit vouchers.

SB2739- 42 -LRB103 34580 RPS 64418 b
1 (a) The Board shall certify to the Governor, on or before
2November 15 of each year until November 15, 2011, the amount of
3the required State contribution to the System for the
4following fiscal year and shall specifically identify the
5System's projected State normal cost for that fiscal year. The
6certification shall include a copy of the actuarial
7recommendations upon which it is based and shall specifically
8identify the System's projected State normal cost for that
9fiscal year.
10 On or before November 1 of each year, beginning November
111, 2012, the Board shall submit to the State Actuary, the
12Governor, and the General Assembly a proposed certification of
13the amount of the required State contribution to the System
14for the next fiscal year, along with all of the actuarial
15assumptions, calculations, and data upon which that proposed
16certification is based. On or before January 1 of each year
17beginning January 1, 2013, the State Actuary shall issue a
18preliminary report concerning the proposed certification and
19identifying, if necessary, recommended changes in actuarial
20assumptions that the Board must consider before finalizing its
21certification of the required State contributions. On or
22before January 15, 2013 and every January 15 thereafter, the
23Board shall certify to the Governor and the General Assembly
24the amount of the required State contribution for the next
25fiscal year. The Board's certification must note any
26deviations from the State Actuary's recommended changes, the

SB2739- 43 -LRB103 34580 RPS 64418 b
1reason or reasons for not following the State Actuary's
2recommended changes, and the fiscal impact of not following
3the State Actuary's recommended changes on the required State
4contribution.
5 On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11 On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 94th General Assembly.
16 On or before April 1, 2011, the Board shall recalculate
17and recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011,
19applying the changes made by Public Act 96-889 to the System's
20assets and liabilities as of June 30, 2009 as though Public Act
2196-889 was approved on that date.
22 By November 1, 2017, the Board shall recalculate and
23recertify to the State Actuary, the Governor, and the General
24Assembly the amount of the State contribution to the System
25for State fiscal year 2018, taking into account the changes in
26required State contributions made by this amendatory Act of

SB2739- 44 -LRB103 34580 RPS 64418 b
1the 100th General Assembly. The State Actuary shall review the
2assumptions and valuations underlying the Board's revised
3certification and issue a preliminary report concerning the
4proposed recertification and identifying, if necessary,
5recommended changes in actuarial assumptions that the Board
6must consider before finalizing its certification of the
7required State contributions. The Board's final certification
8must note any deviations from the State Actuary's recommended
9changes, the reason or reasons for not following the State
10Actuary's recommended changes, and the fiscal impact of not
11following the State Actuary's recommended changes on the
12required State contribution.
13 (b) Unless otherwise directed by the Comptroller under
14subsection (b-1), Beginning in State fiscal year 1996, on or
15as soon as possible after the 15th day of each month the Board
16shall submit vouchers for payment of State contributions to
17the System for the applicable month on the 15th day of each
18month, or as soon thereafter as may be practicable. The amount
19vouchered for a monthly payment shall total , in a total
20monthly amount of one-twelfth of the required annual State
21contribution certified under subsection (a).
22 (b-1) Beginning in State fiscal year 2025, if the
23Comptroller requests that the Board submit, during a State
24fiscal year, vouchers for multiple monthly payments for the
25advance payment of State contributions due to the System for
26that State fiscal year, then the Board shall submit those

SB2739- 45 -LRB103 34580 RPS 64418 b
1additional vouchers as directed by the Comptroller,
2notwithstanding subsection (b). Unless an act of
3appropriations provides otherwise, nothing in this Section
4authorizes the Board to submit, in a State fiscal year,
5vouchers for the payment of State contributions to the System
6in an amount that exceeds the rate of payroll that is certified
7by the System under this Section for that State fiscal year.
8From the effective date of this amendatory Act of the 93rd
9General Assembly through June 30, 2004, the Board shall not
10submit vouchers for the remainder of fiscal year 2004 in
11excess of the fiscal year 2004 certified contribution amount
12determined under this Section after taking into consideration
13the transfer to the System under subsection (c) of Section
146z-61 of the State Finance Act.
15 (b-2) The These vouchers described in subsections (b) and
16(b-1) shall be paid by the State Comptroller and Treasurer by
17warrants drawn on the funds appropriated to the System for
18that fiscal year.
19 If in any month the amount remaining unexpended from all
20other appropriations to the System for the applicable fiscal
21year (including the appropriations to the System under Section
228.12 of the State Finance Act and Section 1 of the State
23Pension Funds Continuing Appropriation Act) is less than the
24amount lawfully vouchered under this Section, the difference
25shall be paid from the General Revenue Fund under the
26continuing appropriation authority provided in Section 1.1 of

SB2739- 46 -LRB103 34580 RPS 64418 b
1the State Pension Funds Continuing Appropriation Act.
2(Source: P.A. 100-23, eff. 7-6-17.)
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