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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1221 Introduced 2/11/2015, by Sen. Matt Murphy SYNOPSIS AS INTRODUCED:
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40 ILCS 5/16-158 |
from Ch. 108 1/2, par. 16-158 |
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Amends the Downstate Teacher Article of the Illinois Pension Code. In a provision relating to employer contributions based on certain increases in teacher salary, changes the threshold increase from 6% to an amount based on the consumer price index. Exempts increases under collective bargaining agreements in effect on February 1, 2015. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| | SB1221 | | LRB099 06186 RPS 26245 b |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Pension Code is amended by changing |
| 5 | | Section 16-158 as follows:
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| 6 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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| 7 | | Sec. 16-158. Contributions by State and other employing |
| 8 | | units.
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| 9 | | (a) The State shall make contributions to the System by |
| 10 | | means of
appropriations from the Common School Fund and other |
| 11 | | State funds of amounts
which, together with other employer |
| 12 | | contributions, employee contributions,
investment income, and |
| 13 | | other income, will be sufficient to meet the cost of
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| 14 | | maintaining and administering the System on a 100% funded basis |
| 15 | | in accordance
with actuarial recommendations by the end of |
| 16 | | State fiscal year 2044.
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| 17 | | The Board shall determine the amount of State contributions |
| 18 | | required for
each fiscal year on the basis of the actuarial |
| 19 | | tables and other assumptions
adopted by the Board and the |
| 20 | | recommendations of the actuary, using the formula
in subsection |
| 21 | | (b-3).
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| 22 | | (a-1) Annually, on or before November 15 through November |
| 23 | | 15, 2011, the Board shall certify to the
Governor the amount of |
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| 1 | | the required State contribution for the coming fiscal
year. The |
| 2 | | certification under this subsection (a-1) shall include a copy |
| 3 | | of the actuarial recommendations
upon which it is based.
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| 4 | | On or before May 1, 2004, the Board shall recalculate and |
| 5 | | recertify to
the Governor the amount of the required State |
| 6 | | contribution to the System for
State fiscal year 2005, taking |
| 7 | | into account the amounts appropriated to and
received by the |
| 8 | | System under subsection (d) of Section 7.2 of the General
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| 9 | | Obligation Bond Act.
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| 10 | | On or before July 1, 2005, the Board shall recalculate and |
| 11 | | recertify
to the Governor the amount of the required State
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| 12 | | contribution to the System for State fiscal year 2006, taking |
| 13 | | into account the changes in required State contributions made |
| 14 | | by this amendatory Act of the 94th General Assembly.
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| 15 | | On or before April 1, 2011, the Board shall recalculate and |
| 16 | | recertify to the Governor the amount of the required State |
| 17 | | contribution to the System for State fiscal year 2011, applying |
| 18 | | the changes made by Public Act 96-889 to the System's assets |
| 19 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
| 20 | | was approved on that date. |
| 21 | | (a-5) On or before November 1 of each year, beginning |
| 22 | | November 1, 2012, the Board shall submit to the State Actuary, |
| 23 | | the Governor, and the General Assembly a proposed certification |
| 24 | | of the amount of the required State contribution to the System |
| 25 | | for the next fiscal year, along with all of the actuarial |
| 26 | | assumptions, calculations, and data upon which that proposed |
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| 1 | | certification is based. On or before January 1 of each year, |
| 2 | | beginning January 1, 2013, the State Actuary shall issue a |
| 3 | | preliminary report concerning the proposed certification and |
| 4 | | identifying, if necessary, recommended changes in actuarial |
| 5 | | assumptions that the Board must consider before finalizing its |
| 6 | | certification of the required State contributions. |
| 7 | | On or before January 15, 2013 and each January 15 |
| 8 | | thereafter, the Board shall certify to the Governor and the |
| 9 | | General Assembly the amount of the required State contribution |
| 10 | | for the next fiscal year. The certification shall include a |
| 11 | | copy of the actuarial
recommendations upon which it is based |
| 12 | | and shall specifically identify the System's projected State |
| 13 | | normal cost for that fiscal year. The Board's certification |
| 14 | | must note any deviations from the State Actuary's recommended |
| 15 | | changes, the reason or reasons for not following the State |
| 16 | | Actuary's recommended changes, and the fiscal impact of not |
| 17 | | following the State Actuary's recommended changes on the |
| 18 | | required State contribution. |
| 19 | | (a-10) For purposes of Section (c-5) of Section 20 of the |
| 20 | | Budget Stabilization Act, on or before November 1 of each year |
| 21 | | beginning November 1, 2014, the Board shall determine the |
| 22 | | amount of the State contribution to the System that would have |
| 23 | | been required for the next fiscal year if this amendatory Act |
| 24 | | of the 98th General Assembly had not taken effect, using the |
| 25 | | best and most recent available data but based on the law in |
| 26 | | effect on May 31, 2014. The Board shall submit to the State |
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| 1 | | Actuary, the Governor, and the General Assembly a proposed |
| 2 | | certification, along with the relevant law, actuarial |
| 3 | | assumptions, calculations, and data upon which that |
| 4 | | certification is based. On or before January 1, 2015 and every |
| 5 | | January 1 thereafter, the State Actuary shall issue a |
| 6 | | preliminary report concerning the proposed certification and |
| 7 | | identifying, if necessary, recommended changes in actuarial |
| 8 | | assumptions that the Board must consider before finalizing its |
| 9 | | certification. On or before January 15, 2015 and every January |
| 10 | | 1 thereafter, the Board shall certify to the Governor and the |
| 11 | | General Assembly the amount of the State contribution to the |
| 12 | | System that would have been required for the next fiscal year |
| 13 | | if this amendatory Act of the 98th General Assembly had not |
| 14 | | taken effect, using the best and most recent available data but |
| 15 | | based on the law in effect on May 31, 2014. The Board's |
| 16 | | certification must note any deviations from the State Actuary's |
| 17 | | recommended changes, the reason or reasons for not following |
| 18 | | the State Actuary's recommended changes, and the impact of not |
| 19 | | following the State Actuary's recommended changes. |
| 20 | | (b) Through State fiscal year 1995, the State contributions |
| 21 | | shall be
paid to the System in accordance with Section 18-7 of |
| 22 | | the School Code.
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| 23 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
| 24 | | of each month,
or as soon thereafter as may be practicable, the |
| 25 | | Board shall submit vouchers
for payment of State contributions |
| 26 | | to the System, in a total monthly amount of
one-twelfth of the |
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| 1 | | required annual State contribution certified under
subsection |
| 2 | | (a-1).
From the
effective date of this amendatory Act of the |
| 3 | | 93rd General Assembly
through June 30, 2004, the Board shall |
| 4 | | not submit vouchers for the
remainder of fiscal year 2004 in |
| 5 | | excess of the fiscal year 2004
certified contribution amount |
| 6 | | determined under this Section
after taking into consideration |
| 7 | | the transfer to the System
under subsection (a) of Section |
| 8 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
| 9 | | the State Comptroller and
Treasurer by warrants drawn on the |
| 10 | | funds appropriated to the System for that
fiscal year.
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| 11 | | If in any month the amount remaining unexpended from all |
| 12 | | other appropriations
to the System for the applicable fiscal |
| 13 | | year (including the appropriations to
the System under Section |
| 14 | | 8.12 of the State Finance Act and Section 1 of the
State |
| 15 | | Pension Funds Continuing Appropriation Act) is less than the |
| 16 | | amount
lawfully vouchered under this subsection, the |
| 17 | | difference shall be paid from the
Common School Fund under the |
| 18 | | continuing appropriation authority provided in
Section 1.1 of |
| 19 | | the State Pension Funds Continuing Appropriation Act.
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| 20 | | (b-2) Allocations from the Common School Fund apportioned |
| 21 | | to school
districts not coming under this System shall not be |
| 22 | | diminished or affected by
the provisions of this Article.
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| 23 | | (b-3) For State fiscal years 2015 through 2044, the minimum |
| 24 | | contribution
to the System to be made by the State for each |
| 25 | | fiscal year shall be an amount
determined by the System to be |
| 26 | | equal to the sum of (1) the State's portion of the projected |
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| 1 | | normal cost for that fiscal year, plus (2) an amount sufficient |
| 2 | | to bring the total assets of the
System up to 100% of the total |
| 3 | | actuarial liabilities of the System by the end of
State fiscal |
| 4 | | year 2044. In making these determinations, the required State
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| 5 | | contribution shall be calculated each year as a level |
| 6 | | percentage of payroll
over the years remaining to and including |
| 7 | | fiscal year 2044 and shall be
determined under the projected |
| 8 | | unit cost method for fiscal year 2015 and under the entry age |
| 9 | | normal actuarial cost method for fiscal years 2016 through |
| 10 | | 2044. |
| 11 | | For State fiscal years 2012 through 2014, the minimum |
| 12 | | contribution
to the System to be made by the State for each |
| 13 | | fiscal year shall be an amount
determined by the System to be |
| 14 | | sufficient to bring the total assets of the
System up to 90% of |
| 15 | | the total actuarial liabilities of the System by the end of
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| 16 | | State fiscal year 2045. In making these determinations, the |
| 17 | | required State
contribution shall be calculated each year as a |
| 18 | | level percentage of payroll
over the years remaining to and |
| 19 | | including fiscal year 2045 and shall be
determined under the |
| 20 | | projected unit credit actuarial cost method.
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| 21 | | For State fiscal years 1996 through 2005, the State |
| 22 | | contribution to the
System, as a percentage of the applicable |
| 23 | | employee payroll, shall be increased
in equal annual increments |
| 24 | | so that by State fiscal year 2011, the State is
contributing at |
| 25 | | the rate required under this Section; except that in the
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| 26 | | following specified State fiscal years, the State contribution |
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| 1 | | to the System
shall not be less than the following indicated |
| 2 | | percentages of the applicable
employee payroll, even if the |
| 3 | | indicated percentage will produce a State
contribution in |
| 4 | | excess of the amount otherwise required under this subsection
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| 5 | | and subsection (a), and notwithstanding any contrary |
| 6 | | certification made under
subsection (a-1) before the effective |
| 7 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
| 8 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
| 9 | | 2003; and
13.56% in FY 2004.
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| 10 | | Notwithstanding any other provision of this Article, the |
| 11 | | total required State
contribution for State fiscal year 2006 is |
| 12 | | $534,627,700.
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| 13 | | Notwithstanding any other provision of this Article, the |
| 14 | | total required State
contribution for State fiscal year 2007 is |
| 15 | | $738,014,500.
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| 16 | | For each of State fiscal years 2008 through 2009, the State |
| 17 | | contribution to
the System, as a percentage of the applicable |
| 18 | | employee payroll, shall be
increased in equal annual increments |
| 19 | | from the required State contribution for State fiscal year |
| 20 | | 2007, so that by State fiscal year 2011, the
State is |
| 21 | | contributing at the rate otherwise required under this Section.
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| 22 | | Notwithstanding any other provision of this Article, the |
| 23 | | total required State contribution for State fiscal year 2010 is |
| 24 | | $2,089,268,000 and shall be made from the proceeds of bonds |
| 25 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
| 26 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
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| 1 | | expenses determined by the System's share of total bond |
| 2 | | proceeds, (ii) any amounts received from the Common School Fund |
| 3 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
| 4 | | due to the issuance of discounted bonds, if applicable. |
| 5 | | Notwithstanding any other provision of this Article, the
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| 6 | | total required State contribution for State fiscal year 2011 is
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| 7 | | the amount recertified by the System on or before April 1, 2011 |
| 8 | | pursuant to subsection (a-1) of this Section and shall be made |
| 9 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
| 10 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
| 11 | | pro rata share of bond sale
expenses determined by the System's |
| 12 | | share of total bond
proceeds, (ii) any amounts received from |
| 13 | | the Common School Fund
in fiscal year 2011, and (iii) any |
| 14 | | reduction in bond proceeds
due to the issuance of discounted |
| 15 | | bonds, if applicable. This amount shall include, in addition to |
| 16 | | the amount certified by the System, an amount necessary to meet |
| 17 | | employer contributions required by the State as an employer |
| 18 | | under paragraph (e) of this Section, which may also be used by |
| 19 | | the System for contributions required by paragraph (a) of |
| 20 | | Section 16-127. |
| 21 | | Beginning in State fiscal year 2045, the minimum State |
| 22 | | contribution for each fiscal year shall be the amount needed to |
| 23 | | maintain the total assets of the System at 100% of the total |
| 24 | | actuarial liabilities of the System.
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| 25 | | Amounts received by the System pursuant to Section 25 of |
| 26 | | the Budget Stabilization Act or Section 8.12 of the State |
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| 1 | | Finance Act in any fiscal year do not reduce and do not |
| 2 | | constitute payment of any portion of the minimum State |
| 3 | | contribution required under this Article in that fiscal year. |
| 4 | | Such amounts shall not reduce, and shall not be included in the |
| 5 | | calculation of, the required State contributions under this |
| 6 | | Article in any future year until the System has reached a |
| 7 | | funding ratio of at least 100%. A reference in this Article to |
| 8 | | the "required State contribution" or any substantially similar |
| 9 | | term does not include or apply to any amounts payable to the |
| 10 | | System under Section 25 of the Budget Stabilization Act. |
| 11 | | Notwithstanding any other provision of this Section, the |
| 12 | | required State
contribution for State fiscal year 2005 and for |
| 13 | | fiscal year 2008 and each fiscal year thereafter through State |
| 14 | | fiscal year 2014, as
calculated under this Section and
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| 15 | | certified under subsection (a-1), shall not exceed an amount |
| 16 | | equal to (i) the
amount of the required State contribution that |
| 17 | | would have been calculated under
this Section for that fiscal |
| 18 | | year if the System had not received any payments
under |
| 19 | | subsection (d) of Section 7.2 of the General Obligation Bond |
| 20 | | Act, minus
(ii) the portion of the State's total debt service |
| 21 | | payments for that fiscal
year on the bonds issued in fiscal |
| 22 | | year 2003 for the purposes of that Section 7.2, as determined
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| 23 | | and certified by the Comptroller, that is the same as the |
| 24 | | System's portion of
the total moneys distributed under |
| 25 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
| 26 | | Act. In determining this maximum for State fiscal years 2008 |
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| 1 | | through 2010, however, the amount referred to in item (i) shall |
| 2 | | be increased, as a percentage of the applicable employee |
| 3 | | payroll, in equal increments calculated from the sum of the |
| 4 | | required State contribution for State fiscal year 2007 plus the |
| 5 | | applicable portion of the State's total debt service payments |
| 6 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
| 7 | | for the purposes of Section 7.2 of the General
Obligation Bond |
| 8 | | Act, so that, by State fiscal year 2011, the
State is |
| 9 | | contributing at the rate otherwise required under this Section.
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| 10 | | (c) Payment of the required State contributions and of all |
| 11 | | pensions,
retirement annuities, death benefits, refunds, and |
| 12 | | other benefits granted
under or assumed by this System, and all |
| 13 | | expenses in connection with the
administration and operation |
| 14 | | thereof, are obligations of the State.
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| 15 | | If members are paid from special trust or federal funds |
| 16 | | which are
administered by the employing unit, whether school |
| 17 | | district or other
unit, the employing unit shall pay to the |
| 18 | | System from such
funds the full accruing retirement costs based |
| 19 | | upon that
service, which, beginning July 1, 2014, shall be at a |
| 20 | | rate, expressed as a percentage of salary, equal to the total |
| 21 | | minimum contribution
to the System to be made by the State for |
| 22 | | that fiscal year, including both normal cost and unfunded |
| 23 | | liability components, expressed as a percentage of payroll, as |
| 24 | | determined by the System under subsection (b-3) of this |
| 25 | | Section. Employer contributions, based on
salary paid to |
| 26 | | members from federal funds, may be forwarded by the |
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| 1 | | distributing
agency of the State of Illinois to the System |
| 2 | | prior to allocation, in an
amount determined in accordance with |
| 3 | | guidelines established by such
agency and the System. Any |
| 4 | | contribution for fiscal year 2015 collected as a result of the |
| 5 | | change made by this amendatory Act of the 98th General Assembly |
| 6 | | shall be considered a State contribution under subsection (b-3) |
| 7 | | of this Section.
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| 8 | | (d) Effective July 1, 1986, any employer of a teacher as |
| 9 | | defined in
paragraph (8) of Section 16-106 shall pay the |
| 10 | | employer's normal cost
of benefits based upon the teacher's |
| 11 | | service, in addition to
employee contributions, as determined |
| 12 | | by the System. Such employer
contributions shall be forwarded |
| 13 | | monthly in accordance with guidelines
established by the |
| 14 | | System.
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| 15 | | However, with respect to benefits granted under Section |
| 16 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
| 17 | | of Section 16-106, the
employer's contribution shall be 12% |
| 18 | | (rather than 20%) of the member's
highest annual salary rate |
| 19 | | for each year of creditable service granted, and
the employer |
| 20 | | shall also pay the required employee contribution on behalf of
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| 21 | | the teacher. For the purposes of Sections 16-133.4 and |
| 22 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
| 23 | | 16-106 who is serving in that capacity
while on leave of |
| 24 | | absence from another employer under this Article shall not
be |
| 25 | | considered an employee of the employer from which the teacher |
| 26 | | is on leave.
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| 1 | | (e) Beginning July 1, 1998, every employer of a teacher
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| 2 | | shall pay to the System an employer contribution computed as |
| 3 | | follows:
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| 4 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
| 5 | | employer
contribution shall be equal to 0.3% of each |
| 6 | | teacher's salary.
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| 7 | | (2) Beginning July 1, 1999 and thereafter, the employer
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| 8 | | contribution shall be equal to 0.58% of each teacher's |
| 9 | | salary.
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| 10 | | The school district or other employing unit may pay these |
| 11 | | employer
contributions out of any source of funding available |
| 12 | | for that purpose and
shall forward the contributions to the |
| 13 | | System on the schedule established
for the payment of member |
| 14 | | contributions.
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| 15 | | These employer contributions are intended to offset a |
| 16 | | portion of the cost
to the System of the increases in |
| 17 | | retirement benefits resulting from this
amendatory Act of 1998.
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| 18 | | Each employer of teachers is entitled to a credit against |
| 19 | | the contributions
required under this subsection (e) with |
| 20 | | respect to salaries paid to teachers
for the period January 1, |
| 21 | | 2002 through June 30, 2003, equal to the amount paid
by that |
| 22 | | employer under subsection (a-5) of Section 6.6 of the State |
| 23 | | Employees
Group Insurance Act of 1971 with respect to salaries |
| 24 | | paid to teachers for that
period.
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| 25 | | The additional 1% employee contribution required under |
| 26 | | Section 16-152 by
this amendatory Act of 1998 is the |
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| 1 | | responsibility of the teacher and not the
teacher's employer, |
| 2 | | unless the employer agrees, through collective bargaining
or |
| 3 | | otherwise, to make the contribution on behalf of the teacher.
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| 4 | | If an employer is required by a contract in effect on May |
| 5 | | 1, 1998 between the
employer and an employee organization to |
| 6 | | pay, on behalf of all its full-time
employees
covered by this |
| 7 | | Article, all mandatory employee contributions required under
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| 8 | | this Article, then the employer shall be excused from paying |
| 9 | | the employer
contribution required under this subsection (e) |
| 10 | | for the balance of the term
of that contract. The employer and |
| 11 | | the employee organization shall jointly
certify to the System |
| 12 | | the existence of the contractual requirement, in such
form as |
| 13 | | the System may prescribe. This exclusion shall cease upon the
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| 14 | | termination, extension, or renewal of the contract at any time |
| 15 | | after May 1,
1998.
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| 16 | | (f) If the amount of a teacher's salary for any school year |
| 17 | | used to determine final average salary exceeds the member's |
| 18 | | annual full-time salary rate with the same employer for the |
| 19 | | previous school year by more than the percentage specified in |
| 20 | | this subsection 6%, the teacher's employer shall pay to the |
| 21 | | System, in addition to all other payments required under this |
| 22 | | Section and in accordance with guidelines established by the |
| 23 | | System, the present value of the increase in benefits resulting |
| 24 | | from the portion of the increase in salary that is in excess of |
| 25 | | the percentage specified in this subsection 6%. This present |
| 26 | | value shall be computed by the System on the basis of the |
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| 1 | | actuarial assumptions and tables used in the most recent |
| 2 | | actuarial valuation of the System that is available at the time |
| 3 | | of the computation. If a teacher's salary for the 2005-2006 |
| 4 | | school year is used to determine final average salary under |
| 5 | | this subsection (f), then the changes made to this subsection |
| 6 | | (f) by Public Act 94-1057 shall apply in calculating whether |
| 7 | | the increase in his or her salary is in excess of the |
| 8 | | percentage specified in this subsection 6%. |
| 9 | | For the purposes of this subsection, the specified |
| 10 | | percentage is 6% through June 30, 2015. Thereafter, the |
| 11 | | specified percentage shall be determined annually for the 12 |
| 12 | | months beginning on July 1 of each year. The specified |
| 13 | | percentage shall be equal to the annual unadjusted percentage |
| 14 | | increase (but not less than zero) in the consumer price index-u |
| 15 | | for the 12 months ending with the September preceding that July |
| 16 | | 1, as determined annually by the Public Pension Division of the |
| 17 | | Department of Insurance; except that with respect to an |
| 18 | | employee covered by a collective bargaining agreement in effect |
| 19 | | on February 1, 2015, the specified rate shall remain at 6% |
| 20 | | until that agreement terminates or is amended or renewed. |
| 21 | | For the purposes of this subsection, "consumer price |
| 22 | | index-u" means the index published by the Bureau of Labor |
| 23 | | Statistics of the United States Department of Labor that |
| 24 | | measures the average change in prices of goods and services |
| 25 | | purchased by all urban consumers, United States city average, |
| 26 | | all items, 1982-84 = 100. |
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| 1 | | For the purposes of this Section, change in employment |
| 2 | | under Section 10-21.12 of the School Code on or after June 1, |
| 3 | | 2005 shall constitute a change in employer. The System may |
| 4 | | require the employer to provide any pertinent information or |
| 5 | | documentation.
The changes made to this subsection (f) by this |
| 6 | | amendatory Act of the 94th General Assembly apply without |
| 7 | | regard to whether the teacher was in service on or after its |
| 8 | | effective date.
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| 9 | | Whenever it determines that a payment is or may be required |
| 10 | | under this subsection, the System shall calculate the amount of |
| 11 | | the payment and bill the employer for that amount. The bill |
| 12 | | shall specify the calculations used to determine the amount |
| 13 | | due. If the employer disputes the amount of the bill, it may, |
| 14 | | within 30 days after receipt of the bill, apply to the System |
| 15 | | in writing for a recalculation. The application must specify in |
| 16 | | detail the grounds of the dispute and, if the employer asserts |
| 17 | | that the calculation is subject to subsection (g) or (h) of |
| 18 | | this Section, must include an affidavit setting forth and |
| 19 | | attesting to all facts within the employer's knowledge that are |
| 20 | | pertinent to the applicability of that subsection. Upon |
| 21 | | receiving a timely application for recalculation, the System |
| 22 | | shall review the application and, if appropriate, recalculate |
| 23 | | the amount due.
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| 24 | | The employer contributions required under this subsection |
| 25 | | (f) may be paid in the form of a lump sum within 90 days after |
| 26 | | receipt of the bill. If the employer contributions are not paid |
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| 1 | | within 90 days after receipt of the bill, then interest will be |
| 2 | | charged at a rate equal to the System's annual actuarially |
| 3 | | assumed rate of return on investment compounded annually from |
| 4 | | the 91st day after receipt of the bill. Payments must be |
| 5 | | concluded within 3 years after the employer's receipt of the |
| 6 | | bill.
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| 7 | | (g) This subsection (g) applies only to payments made or |
| 8 | | salary increases given on or after June 1, 2005 but before July |
| 9 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
| 10 | | require the System to refund any payments received before
July |
| 11 | | 31, 2006 (the effective date of Public Act 94-1057). |
| 12 | | When assessing payment for any amount due under subsection |
| 13 | | (f), the System shall exclude salary increases paid to teachers |
| 14 | | under contracts or collective bargaining agreements entered |
| 15 | | into, amended, or renewed before June 1, 2005.
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| 16 | | When assessing payment for any amount due under subsection |
| 17 | | (f), the System shall exclude salary increases paid to a |
| 18 | | teacher at a time when the teacher is 10 or more years from |
| 19 | | retirement eligibility under Section 16-132 or 16-133.2.
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| 20 | | When assessing payment for any amount due under subsection |
| 21 | | (f), the System shall exclude salary increases resulting from |
| 22 | | overload work, including summer school, when the school |
| 23 | | district has certified to the System, and the System has |
| 24 | | approved the certification, that (i) the overload work is for |
| 25 | | the sole purpose of classroom instruction in excess of the |
| 26 | | standard number of classes for a full-time teacher in a school |
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| 1 | | district during a school year and (ii) the salary increases are |
| 2 | | equal to or less than the rate of pay for classroom instruction |
| 3 | | computed on the teacher's current salary and work schedule.
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| 4 | | When assessing payment for any amount due under subsection |
| 5 | | (f), the System shall exclude a salary increase resulting from |
| 6 | | a promotion (i) for which the employee is required to hold a |
| 7 | | certificate or supervisory endorsement issued by the State |
| 8 | | Teacher Certification Board that is a different certification |
| 9 | | or supervisory endorsement than is required for the teacher's |
| 10 | | previous position and (ii) to a position that has existed and |
| 11 | | been filled by a member for no less than one complete academic |
| 12 | | year and the salary increase from the promotion is an increase |
| 13 | | that results in an amount no greater than the lesser of the |
| 14 | | average salary paid for other similar positions in the district |
| 15 | | requiring the same certification or the amount stipulated in |
| 16 | | the collective bargaining agreement for a similar position |
| 17 | | requiring the same certification.
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| 18 | | When assessing payment for any amount due under subsection |
| 19 | | (f), the System shall exclude any payment to the teacher from |
| 20 | | the State of Illinois or the State Board of Education over |
| 21 | | which the employer does not have discretion, notwithstanding |
| 22 | | that the payment is included in the computation of final |
| 23 | | average salary.
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| 24 | | (h) When assessing payment for any amount due under |
| 25 | | subsection (f), the System shall exclude any salary increase |
| 26 | | described in subsection (g) of this Section given on or after |
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| 1 | | July 1, 2011 but before July 1, 2014 under a contract or |
| 2 | | collective bargaining agreement entered into, amended, or |
| 3 | | renewed on or after June 1, 2005 but before July 1, 2011. |
| 4 | | Notwithstanding any other provision of this Section, any |
| 5 | | payments made or salary increases given after June 30, 2014 |
| 6 | | shall be used in assessing payment for any amount due under |
| 7 | | subsection (f) of this Section.
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| 8 | | (i) The System shall prepare a report and file copies of |
| 9 | | the report with the Governor and the General Assembly by |
| 10 | | January 1, 2007 that contains all of the following information: |
| 11 | | (1) The number of recalculations required by the |
| 12 | | changes made to this Section by Public Act 94-1057 for each |
| 13 | | employer. |
| 14 | | (2) The dollar amount by which each employer's |
| 15 | | contribution to the System was changed due to |
| 16 | | recalculations required by Public Act 94-1057. |
| 17 | | (3) The total amount the System received from each |
| 18 | | employer as a result of the changes made to this Section by |
| 19 | | Public Act 94-4. |
| 20 | | (4) The increase in the required State contribution |
| 21 | | resulting from the changes made to this Section by Public |
| 22 | | Act 94-1057.
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| 23 | | (j) For purposes of determining the required State |
| 24 | | contribution to the System, the value of the System's assets |
| 25 | | shall be equal to the actuarial value of the System's assets, |
| 26 | | which shall be calculated as follows: |
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| 1 | | As of June 30, 2008, the actuarial value of the System's |
| 2 | | assets shall be equal to the market value of the assets as of |
| 3 | | that date. In determining the actuarial value of the System's |
| 4 | | assets for fiscal years after June 30, 2008, any actuarial |
| 5 | | gains or losses from investment return incurred in a fiscal |
| 6 | | year shall be recognized in equal annual amounts over the |
| 7 | | 5-year period following that fiscal year. |
| 8 | | (k) For purposes of determining the required State |
| 9 | | contribution to the system for a particular year, the actuarial |
| 10 | | value of assets shall be assumed to earn a rate of return equal |
| 11 | | to the system's actuarially assumed rate of return. |
| 12 | | (Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12; |
| 13 | | 98-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
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| 14 | | Section 99. Effective date. This Act takes effect upon |
| 15 | | becoming law.
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