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 
 
 
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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 
 
 
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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. 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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:
 
 
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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 
 
 
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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 
 
 
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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.)

 
 
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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 
 
 
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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 
 
 
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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, 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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.)