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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1668

Introduced 2/5/2025, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/2-124

from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
40 ILCS 5/15-155

from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158

from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131

from Ch. 108 1/2, par. 18-131

Amends the General Assembly, State Employees, State Universities,
Downstate Teachers, and Judges Articles of the Illinois Pension Code.
Provides that, beginning the first State fiscal year after the total
assets of the System are at least 90% of the total actuarial liabilities of
the System and each State fiscal year thereafter, the contribution to the
System shall be calculated based on an actuarially determined contribution
rate. Provides that the System shall calculate the actuarially determined
contribution rate in accordance with the Governmental Accounting Research
System and officially adopted actuarial assumptions. Provides that the
System shall use this valuation to calculate the actuarially determined
contribution rate for the next fiscal year. Provides that the actuarially
determined contribution rate for a fiscal year shall not be less than the
amount for the preceding fiscal year if the ratio of the System's total
assets to the System's total liabilities is less than 90%. Provides that
the actuarially determined contribution rate shall not be less than the
normal cost for the fiscal year. Sets forth provisions concerning
reporting and determining the actuarially determined contribution rate.
Makes conforming changes.
LRB104 09615 RPS 19680 b

A BILL FOR

SB1668
LRB104 09615 RPS 19680 b
1

AN ACT concerning public employee benefits.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Pension Code is amended by
5
changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as
6
follows:

7

(40 ILCS 5/2-124)

(from Ch. 108 1/2, par. 2-124)
8

Sec. 2-124.
Contributions by State.
9

(a) The State shall make contributions to the System by
10
appropriations of amounts which, together with the
11
contributions of participants, interest earned on investments,
12
and other income will meet the cost of maintaining and
13
administering the System on a 90% funded basis in accordance
14
with actuarial recommendations.
15

(b) The Board shall determine the amount of State
16
contributions required for each fiscal year on the basis of
17
the actuarial tables and other assumptions adopted by the
18
Board and the prescribed rate of interest, using the formula
19
in subsection (c).
20

(c) For State fiscal years 2012 through 2045,
except as
21
otherwise provided in this Section,
the minimum contribution
22
to the System to be made by the State for each fiscal year
23
shall be an amount determined by the System to be sufficient to

SB1668
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LRB104 09615 RPS 19680 b
1
bring the total assets of the System up to 90% of the total
2
actuarial liabilities of the System by the end of State fiscal
3
year 2045. In making these determinations, the required State
4
contribution shall be calculated each year as a level
5
percentage of payroll over the years remaining to and
6
including fiscal year 2045 and shall be determined under the
7
projected unit credit actuarial cost method.
8

If the System determines that the minimum contribution to
9
the System is sufficient to bring the total assets of the
10
System up to 90% of the total actuarial liabilities of the
11
System in the following fiscal year, then the System shall
12
determine the actuarially determined contribution rate for the
13
following year in accordance with this paragraph. Beginning
14
the first State fiscal year after the total assets of the
15
System are at least 90% of the total actuarial liabilities of
16
the System and each State fiscal year thereafter, the
17
contribution to the System shall be calculated based on an
18
actuarially determined contribution rate in accordance with
19
the following:
20

(1) The Board, with the consultation of a competent
21

actuary, shall calculate the actuarially determined
22

contribution rate for each fiscal year.
23

(2) The System shall calculate the actuarially
24

determined contribution rate in accordance with the
25

Governmental Accounting Research System and officially
26

adopted actuarial assumptions. The System shall use this

SB1668
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LRB104 09615 RPS 19680 b
1

valuation to calculate the actuarially determined
2

contribution rate for the next fiscal year.
3

(3) No later than January 1 of each year in which this
4

paragraph applies, the System shall report the actuarially
5

determined contribution rate for the following fiscal year
6

to the Governor, the Auditor General, the State Treasurer,
7

and the General Assembly.
8

(4) After the calculation of the actuarially
9

determined contribution rate under item (2), the General
10

Assembly and the System shall calculate the necessary
11

amount to account for any changes in appropriations
12

necessary to fund the minimum contribution, including
13

changes in amounts for the employer's share of the
14

actuarially determined contribution rate.
15

(5) The actuarially determined contribution rate for a
16

fiscal year shall not be less than the amount for the
17

preceding fiscal year if the ratio of the System's total
18

assets to the System's total liabilities is less than 90%.
19

(6) In no event shall the actuarially determined
20

contribution rate be less than the normal cost for that
21

fiscal year.

22

A change in an actuarial or investment assumption that
23
increases or decreases the required State contribution and
24
first applies in State fiscal year 2018 or thereafter shall be
25
implemented in equal annual amounts over a 5-year period
26
beginning in the State fiscal year in which the actuarial

SB1668
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LRB104 09615 RPS 19680 b
1
change first applies to the required State contribution.
2

A change in an actuarial or investment assumption that
3
increases or decreases the required State contribution and
4
first applied to the State contribution in fiscal year 2014,
5
2015, 2016, or 2017 shall be implemented:
6

(i) as already applied in State fiscal years before
7

2018; and
8

(ii) in the portion of the 5-year period beginning in
9

the State fiscal year in which the actuarial change first
10

applied that occurs in State fiscal year 2018 or
11

thereafter, by calculating the change in equal annual
12

amounts over that 5-year period and then implementing it
13

at the resulting annual rate in each of the remaining
14

fiscal years in that 5-year period.
15

For State fiscal years 1996 through 2005, the State
16
contribution to the System, as a percentage of the applicable
17
employee payroll, shall be increased in equal annual
18
increments so that by State fiscal year 2011, the State is
19
contributing at the rate required under this Section.
20

Notwithstanding any other provision of this Article, the
21
total required State contribution for State fiscal year 2006
22
is $4,157,000.
23

Notwithstanding any other provision of this Article, the
24
total required State contribution for State fiscal year 2007
25
is $5,220,300.
26

For each of State fiscal years 2008 through 2009, the

SB1668
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LRB104 09615 RPS 19680 b
1
State contribution to the System, as a percentage of the
2
applicable employee payroll, shall be increased in equal
3
annual increments from the required State contribution for
4
State fiscal year 2007, so that by State fiscal year 2011, the
5
State is contributing at the rate otherwise required under
6
this Section.
7

Notwithstanding any other provision of this Article, the
8
total required State contribution for State fiscal year 2010
9
is $10,454,000 and shall be made from the proceeds of bonds
10
sold in fiscal year 2010 pursuant to Section 7.2 of the General
11
Obligation Bond Act, less (i) the pro rata share of bond sale
12
expenses determined by the System's share of total bond
13
proceeds, (ii) any amounts received from the General Revenue
14
Fund in fiscal year 2010, and (iii) any reduction in bond
15
proceeds due to the issuance of discounted bonds, if
16
applicable.
17

Notwithstanding any other provision of this Article, the
18
total required State contribution for State fiscal year 2011
19
is the amount recertified by the System on or before April 1,
20
2011 pursuant to Section 2-134 and shall be made from the
21
proceeds of bonds sold in fiscal year 2011 pursuant to Section
22
7.2 of the General Obligation Bond Act, less (i) the pro rata
23
share of bond sale expenses determined by the System's share
24
of total bond proceeds, (ii) any amounts received from the
25
General Revenue Fund in fiscal year 2011, and (iii) any
26
reduction in bond proceeds due to the issuance of discounted

SB1668
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LRB104 09615 RPS 19680 b
1
bonds, if applicable.
2

Beginning in State fiscal year 2046,
except as otherwise
3
provided in this Section,
the minimum State contribution for
4
each fiscal year shall be the amount needed to maintain the
5
total assets of the System at 90% of the total actuarial
6
liabilities of the System.
7

Amounts received by the System pursuant to Section 25 of
8
the Budget Stabilization Act or Section 8.12 of the State
9
Finance Act in any fiscal year do not reduce and do not
10
constitute payment of any portion of the minimum State
11
contribution required under this Article in that fiscal year.
12
Such amounts shall not reduce, and shall not be included in the
13
calculation of, the required State contributions under this
14
Article in any future year until the System has reached a
15
funding ratio of at least 90%. A reference in this Article to
16
the "required State contribution" or any substantially similar
17
term does not include or apply to any amounts payable to the
18
System under Section 25 of the Budget Stabilization Act.
19

Notwithstanding any other provision of this Section, the
20
required State contribution for State fiscal year 2005 and for
21
fiscal year 2008 and each fiscal year thereafter, as
22
calculated under this Section and certified under Section
23
2-134, shall not exceed an amount equal to (i) the amount of
24
the required State contribution that would have been
25
calculated under this Section for that fiscal year if the
26
System had not received any payments under subsection (d) of

SB1668
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LRB104 09615 RPS 19680 b
1
Section 7.2 of the General Obligation Bond Act, minus (ii) the
2
portion of the State's total debt service payments for that
3
fiscal year on the bonds issued in fiscal year 2003 for the
4
purposes of that Section 7.2, as determined and certified by
5
the Comptroller, that is the same as the System's portion of
6
the total moneys distributed under subsection (d) of Section
7
7.2 of the General Obligation Bond Act. In determining this
8
maximum for State fiscal years 2008 through 2010, however, the
9
amount referred to in item (i) shall be increased, as a
10
percentage of the applicable employee payroll, in equal
11
increments calculated from the sum of the required State
12
contribution for State fiscal year 2007 plus the applicable
13
portion of the State's total debt service payments for fiscal
14
year 2007 on the bonds issued in fiscal year 2003 for the
15
purposes of Section 7.2 of the General Obligation Bond Act, so
16
that, by State fiscal year 2011, the State is contributing at
17
the rate otherwise required under this Section.
18

(d) For purposes of determining the required State
19
contribution to the System, the value of the System's assets
20
shall be equal to the actuarial value of the System's assets,
21
which shall be calculated as follows:
22

As of June 30, 2008, the actuarial value of the System's
23
assets shall be equal to the market value of the assets as of
24
that date. In determining the actuarial value of the System's
25
assets for fiscal years after June 30, 2008, any actuarial
26
gains or losses from investment return incurred in a fiscal

SB1668
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LRB104 09615 RPS 19680 b
1
year shall be recognized in equal annual amounts over the
2
5-year period following that fiscal year.
3

(e) For purposes of determining the required State
4
contribution to the system for a particular year, the
5
actuarial value of assets shall be assumed to earn a rate of
6
return equal to the system's actuarially assumed rate of
7
return.
8
(Source: P.A. 100-23, eff. 7-6-17.)

9

(40 ILCS 5/14-131)
10

Sec. 14-131.
Contributions by State.
11

(a) The State shall make contributions to the System by
12
appropriations of amounts which, together with other employer
13
contributions from trust, federal, and other funds, employee
14
contributions, investment income, and other income, will be
15
sufficient to meet the cost of maintaining and administering
16
the System on a 90% funded basis in accordance with actuarial
17
recommendations.
18

For the purposes of this Section and Section 14-135.08,
19
references to State contributions refer only to employer
20
contributions and do not include employee contributions that
21
are picked up or otherwise paid by the State or a department on
22
behalf of the employee.
23

(b) The Board shall determine the total amount of State
24
contributions required for each fiscal year on the basis of
25
the actuarial tables and other assumptions adopted by the

SB1668
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LRB104 09615 RPS 19680 b
1
Board, using the formula in subsection (e).
2

The Board shall also determine a State contribution rate
3
for each fiscal year, expressed as a percentage of payroll,
4
based on the total required State contribution for that fiscal
5
year (less the amount received by the System from
6
appropriations under Section 8.12 of the State Finance Act and
7
Section 1 of the State Pension Funds Continuing Appropriation
8
Act, if any, for the fiscal year ending on the June 30
9
immediately preceding the applicable November 15 certification
10
deadline), the estimated payroll (including all forms of
11
compensation) for personal services rendered by eligible
12
employees, and the recommendations of the actuary.
13

For the purposes of this Section and Section 14.1 of the
14
State Finance Act, the term "eligible employees" includes
15
employees who participate in the System, persons who may elect
16
to participate in the System but have not so elected, persons
17
who are serving a qualifying period that is required for
18
participation, and annuitants employed by a department as
19
described in subdivision (a)(1) or (a)(2) of Section 14-111.
20

(c) Contributions shall be made by the several departments
21
for each pay period by warrants drawn by the State Comptroller
22
against their respective funds or appropriations based upon
23
vouchers stating the amount to be so contributed. These
24
amounts shall be based on the full rate certified by the Board
25
under Section 14-135.08 for that fiscal year. From March 5,
26
2004 (the effective date of Public Act 93-665) through the

SB1668
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LRB104 09615 RPS 19680 b
1
payment of the final payroll from fiscal year 2004
2
appropriations, the several departments shall not make
3
contributions for the remainder of fiscal year 2004 but shall
4
instead make payments as required under subsection (a-1) of
5
Section 14.1 of the State Finance Act. The several departments
6
shall resume those contributions at the commencement of fiscal
7
year 2005.
8

(c-1) Notwithstanding subsection (c) of this Section, for
9
fiscal years 2010, 2012, and each fiscal year thereafter,
10
contributions by the several departments are not required to
11
be made for General Revenue Funds payrolls processed by the
12
Comptroller. Payrolls paid by the several departments from all
13
other State funds must continue to be processed pursuant to
14
subsection (c) of this Section.
15

(c-2) Unless otherwise directed by the Comptroller under
16
subsection (c-3), the Board shall submit vouchers for payment
17
of State contributions to the System for the applicable month
18
on the 15th day of each month, or as soon thereafter as may be
19
practicable. The amount vouchered for a monthly payment shall
20
total one-twelfth of the fiscal year General Revenue Fund
21
contribution as certified by the System pursuant to Section
22
14-135.08 of this Code.
23

(c-3) Beginning in State fiscal year 2025, if the
24
Comptroller requests that the Board submit, during a State
25
fiscal year, vouchers for multiple monthly payments for
26
advance payment of State contributions due to the System for

SB1668
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LRB104 09615 RPS 19680 b
1
that State fiscal year, then the Board shall submit those
2
additional vouchers as directed by the Comptroller,
3
notwithstanding subsection (c-2). Unless an act of
4
appropriations provides otherwise, nothing in this Section
5
authorizes the Board to submit, in a State fiscal year,
6
vouchers for the payment of State contributions to the System
7
in an amount that exceeds the rate of payroll that is certified
8
by the System under Section 14-135.08 for that State fiscal
9
year.
10

(d) If an employee is paid from trust funds or federal
11
funds, the department or other employer shall pay employer
12
contributions from those funds to the System at the certified
13
rate, unless the terms of the trust or the federal-State
14
agreement preclude the use of the funds for that purpose, in
15
which case the required employer contributions shall be paid
16
by the State.
17

(e) For State fiscal years 2012 through 2045,
except as
18
otherwise provided in this Section,
the minimum contribution
19
to the System to be made by the State for each fiscal year
20
shall be an amount determined by the System to be sufficient to
21
bring the total assets of the System up to 90% of the total
22
actuarial liabilities of the System by the end of State fiscal
23
year 2045. In making these determinations, the required State
24
contribution shall be calculated each year as a level
25
percentage of payroll over the years remaining to and
26
including fiscal year 2045 and shall be determined under the

SB1668
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LRB104 09615 RPS 19680 b
1
projected unit credit actuarial cost method.
2

If the System determines that the minimum contribution to
3
the System is sufficient to bring the total assets of the
4
System up to 90% of the total actuarial liabilities of the
5
System in the following fiscal year, then the System shall
6
determine the actuarially determined contribution rate for the
7
following year in accordance with this paragraph. Beginning
8
the first State fiscal year after the total assets of the
9
System are at least 90% of the total actuarial liabilities of
10
the System and each State fiscal year thereafter, the
11
contribution to the System shall be calculated based on an
12
actuarially determined contribution rate in accordance with
13
the following:
14

(1) The Board, with the consultation of a competent
15

actuary, shall calculate the actuarially determined
16

contribution rate for each fiscal year.
17

(2) The System shall calculate the actuarially
18

determined contribution rate in accordance with the
19

Governmental Accounting Research System and officially
20

adopted actuarial assumptions. The System shall use this
21

valuation to calculate the actuarially determined
22

contribution rate for the next fiscal year.
23

(3) No later than January 1 of each year in which this
24

paragraph applies, the System shall report the actuarially
25

determined contribution rate for the following fiscal year
26

to the Governor, the Auditor General, the State Treasurer,

SB1668
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LRB104 09615 RPS 19680 b
1

and the General Assembly.
2

(4) After the calculation of the actuarially
3

determined contribution rate under item (2), the General
4

Assembly and the System shall calculate the necessary
5

amount to account for any changes in appropriations
6

necessary to fund the minimum contribution, including
7

changes in amounts for the employer's share of the
8

actuarially determined contribution rate.
9

(5) The actuarially determined contribution rate for a
10

fiscal year shall not be less than the amount for the
11

preceding fiscal year if the ratio of the System's total
12

assets to the System's total liabilities is less than 90%.
13

(6) In no event shall the actuarially determined
14

contribution rate be less than the normal cost for that
15

fiscal year.

16

A change in an actuarial or investment assumption that
17
increases or decreases the required State contribution and
18
first applies in State fiscal year 2018 or thereafter shall be
19
implemented in equal annual amounts over a 5-year period
20
beginning in the State fiscal year in which the actuarial
21
change first applies to the required State contribution.
22

A change in an actuarial or investment assumption that
23
increases or decreases the required State contribution and
24
first applied to the State contribution in fiscal year 2014,
25
2015, 2016, or 2017 shall be implemented:
26

(i) as already applied in State fiscal years before

SB1668
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LRB104 09615 RPS 19680 b
1

2018; and
2

(ii) in the portion of the 5-year period beginning in
3

the State fiscal year in which the actuarial change first
4

applied that occurs in State fiscal year 2018 or
5

thereafter, by calculating the change in equal annual
6

amounts over that 5-year period and then implementing it
7

at the resulting annual rate in each of the remaining
8

fiscal years in that 5-year period.
9

For State fiscal years 1996 through 2005, the State
10
contribution to the System, as a percentage of the applicable
11
employee payroll, shall be increased in equal annual
12
increments so that by State fiscal year 2011, the State is
13
contributing at the rate required under this Section; except
14
that (i) for State fiscal year 1998, for all purposes of this
15
Code and any other law of this State, the certified percentage
16
of the applicable employee payroll shall be 5.052% for
17
employees earning eligible creditable service under Section
18
14-110 and 6.500% for all other employees, notwithstanding any
19
contrary certification made under Section 14-135.08 before
20
July 7, 1997 (the effective date of Public Act 90-65), and (ii)
21
in the following specified State fiscal years, the State
22
contribution to the System shall not be less than the
23
following indicated percentages of the applicable employee
24
payroll, even if the indicated percentage will produce a State
25
contribution in excess of the amount otherwise required under
26
this subsection and subsection (a): 9.8% in FY 1999; 10.0% in

SB1668
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LRB104 09615 RPS 19680 b
1
FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
2
and 10.8% in FY 2004.
3

Beginning in State fiscal year 2046,
except as otherwise
4
provided in this Section,
the minimum State contribution for
5
each fiscal year shall be the amount needed to maintain the
6
total assets of the System at 90% of the total actuarial
7
liabilities of the System.
8

Amounts received by the System pursuant to Section 25 of
9
the Budget Stabilization Act or Section 8.12 of the State
10
Finance Act in any fiscal year do not reduce and do not
11
constitute payment of any portion of the minimum State
12
contribution required under this Article in that fiscal year.
13
Such amounts shall not reduce, and shall not be included in the
14
calculation of, the required State contributions under this
15
Article in any future year until the System has reached a
16
funding ratio of at least 90%. A reference in this Article to
17
the "required State contribution" or any substantially similar
18
term does not include or apply to any amounts payable to the
19
System under Section 25 of the Budget Stabilization Act.
20

Notwithstanding any other provision of this Section, the
21
required State contribution for State fiscal year 2005 and for
22
fiscal year 2008 and each fiscal year thereafter, as
23
calculated under this Section and certified under Section
24
14-135.08, shall not exceed an amount equal to (i) the amount
25
of the required State contribution that would have been
26
calculated under this Section for that fiscal year if the

SB1668
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LRB104 09615 RPS 19680 b
1
System had not received any payments under subsection (d) of
2
Section 7.2 of the General Obligation Bond Act, minus (ii) the
3
portion of the State's total debt service payments for that
4
fiscal year on the bonds issued in fiscal year 2003 for the
5
purposes of that Section 7.2, as determined and certified by
6
the Comptroller, that is the same as the System's portion of
7
the total moneys distributed under subsection (d) of Section
8
7.2 of the General Obligation Bond Act.
9

(f) (Blank).
10

(g) For purposes of determining the required State
11
contribution to the System, the value of the System's assets
12
shall be equal to the actuarial value of the System's assets,
13
which shall be calculated as follows:
14

As of June 30, 2008, the actuarial value of the System's
15
assets shall be equal to the market value of the assets as of
16
that date. In determining the actuarial value of the System's
17
assets for fiscal years after June 30, 2008, any actuarial
18
gains or losses from investment return incurred in a fiscal
19
year shall be recognized in equal annual amounts over the
20
5-year period following that fiscal year.
21

(h) For purposes of determining the required State
22
contribution to the System for a particular year, the
23
actuarial value of assets shall be assumed to earn a rate of
24
return equal to the System's actuarially assumed rate of
25
return.
26

(i) (Blank).

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1

(j) (Blank).
2

(k) For fiscal year 2012 and each fiscal year thereafter,
3
after the submission of all payments for eligible employees
4
from personal services line items paid from the General
5
Revenue Fund in the fiscal year have been made, the
6
Comptroller shall provide to the System a certification of the
7
sum of all expenditures in the fiscal year for personal
8
services. Upon receipt of the certification, the System shall
9
determine the amount due to the System based on the full rate
10
certified by the Board under Section 14-135.08 for the fiscal
11
year in order to meet the State's obligation under this
12
Section. The System shall compare this amount due to the
13
amount received by the System for the fiscal year. If the
14
amount due is more than the amount received, the difference
15
shall be termed the "Prior Fiscal Year Shortfall" for purposes
16
of this Section, and the Prior Fiscal Year Shortfall shall be
17
satisfied under Section 1.2 of the State Pension Funds
18
Continuing Appropriation Act. If the amount due is less than
19
the amount received, the difference shall be termed the "Prior
20
Fiscal Year Overpayment" for purposes of this Section, and the
21
Prior Fiscal Year Overpayment shall be repaid by the System to
22
the General Revenue Fund as soon as practicable after the
23
certification.
24
(Source: P.A. 103-588, eff. 6-5-24.)

25

(40 ILCS 5/15-155)

(from Ch. 108 1/2, par. 15-155)

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Sec. 15-155.
Employer contributions.
2

(a) The State of Illinois shall make contributions by
3
appropriations of amounts which, together with the other
4
employer contributions from trust, federal, and other funds,
5
employee contributions, income from investments, and other
6
income of this System, will be sufficient to meet the cost of
7
maintaining and administering the System on a 90% funded basis
8
in accordance with actuarial recommendations.
9

The Board shall determine the amount of State
10
contributions required for each fiscal year on the basis of
11
the actuarial tables and other assumptions adopted by the
12
Board and the recommendations of the actuary, using the
13
formula in subsection (a-1).
14

(a-1) For State fiscal years 2012 through 2045,
except as
15
otherwise provided in this Section,
the minimum contribution
16
to the System to be made by the State for each fiscal year
17
shall be an amount determined by the System to be sufficient to
18
bring the total assets of the System up to 90% of the total
19
actuarial liabilities of the System by the end of State fiscal
20
year 2045. In making these determinations, the required State
21
contribution shall be calculated each year as a level
22
percentage of payroll over the years remaining to and
23
including fiscal year 2045 and shall be determined under the
24
projected unit credit actuarial cost method.
25

If the System determines that the minimum contribution to
26
the System is sufficient to bring the total assets of the

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1
System up to 90% of the total actuarial liabilities of the
2
System in the following fiscal year, then the System shall
3
determine the actuarially determined contribution rate for the
4
following year in accordance with this paragraph. Beginning
5
the first State fiscal year after the total assets of the
6
System are at least 90% of the total actuarial liabilities of
7
the System and each State fiscal year thereafter, the
8
contribution to the System shall be calculated based on an
9
actuarially determined contribution rate in accordance with
10
the following:
11

(1) The Board, with the consultation of a competent
12

actuary, shall calculate the actuarially determined
13

contribution rate for each fiscal year.
14

(2) The System shall calculate the actuarially
15

determined contribution rate in accordance with the
16

Governmental Accounting Research System and officially
17

adopted actuarial assumptions. The System shall use this
18

valuation to calculate the actuarially determined
19

contribution rate for the next fiscal year.
20

(3) No later than January 1 of each year in which this
21

paragraph applies, the System shall report the actuarially
22

determined contribution rate for the following fiscal year
23

to the Governor, the Auditor General, the State Treasurer,
24

and the General Assembly.
25

(4) After the calculation of the actuarially
26

determined contribution rate under item (2), the General

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1

Assembly and the System shall calculate the necessary
2

amount to account for any changes in appropriations
3

necessary to fund the minimum contribution, including
4

changes in amounts for the employer's share of the
5

actuarially determined contribution rate.
6

(5) The actuarially determined contribution rate for a
7

fiscal year shall not be less than the amount for the
8

preceding fiscal year if the ratio of the System's total
9

assets to the System's total liabilities is less than 90%.
10

(6) In no event shall the actuarially determined
11

contribution rate be less than the normal cost for that
12

fiscal year.

13

For each of State fiscal years 2018, 2019, and 2020, the
14
State shall make an additional contribution to the System
15
equal to 2% of the total payroll of each employee who is deemed
16
to have elected the benefits under Section 1-161 or who has
17
made the election under subsection (c) of Section 1-161.
18

A change in an actuarial or investment assumption that
19
increases or decreases the required State contribution and
20
first applies in State fiscal year 2018 or thereafter shall be
21
implemented in equal annual amounts over a 5-year period
22
beginning in the State fiscal year in which the actuarial
23
change first applies to the required State contribution.
24

A change in an actuarial or investment assumption that
25
increases or decreases the required State contribution and
26
first applied to the State contribution in fiscal year 2014,

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1
2015, 2016, or 2017 shall be implemented:
2

(i) as already applied in State fiscal years before
3

2018; and
4

(ii) in the portion of the 5-year period beginning in
5

the State fiscal year in which the actuarial change first
6

applied that occurs in State fiscal year 2018 or
7

thereafter, by calculating the change in equal annual
8

amounts over that 5-year period and then implementing it
9

at the resulting annual rate in each of the remaining
10

fiscal years in that 5-year period.
11

For State fiscal years 1996 through 2005, the State
12
contribution to the System, as a percentage of the applicable
13
employee payroll, shall be increased in equal annual
14
increments so that by State fiscal year 2011, the State is
15
contributing at the rate required under this Section.
16

Notwithstanding any other provision of this Article, the
17
total required State contribution for State fiscal year 2006
18
is $166,641,900.
19

Notwithstanding any other provision of this Article, the
20
total required State contribution for State fiscal year 2007
21
is $252,064,100.
22

For each of State fiscal years 2008 through 2009, the
23
State contribution to the System, as a percentage of the
24
applicable employee payroll, shall be increased in equal
25
annual increments from the required State contribution for
26
State fiscal year 2007, so that by State fiscal year 2011, the

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1
State is contributing at the rate otherwise required under
2
this Section.
3

Notwithstanding any other provision of this Article, the
4
total required State contribution for State fiscal year 2010
5
is $702,514,000 and shall be made from the State Pensions Fund
6
and proceeds of bonds sold in fiscal year 2010 pursuant to
7
Section 7.2 of the General Obligation Bond Act, less (i) the
8
pro rata share of bond sale expenses determined by the
9
System's share of total bond proceeds, (ii) any amounts
10
received from the General Revenue Fund in fiscal year 2010,
11
(iii) any reduction in bond proceeds due to the issuance of
12
discounted bonds, if applicable.
13

Notwithstanding any other provision of this Article, the
14
total required State contribution for State fiscal year 2011
15
is the amount recertified by the System on or before April 1,
16
2011 pursuant to Section 15-165 and shall be made from the
17
State Pensions Fund and proceeds of bonds sold in fiscal year
18
2011 pursuant to Section 7.2 of the General Obligation Bond
19
Act, less (i) the pro rata share of bond sale expenses
20
determined by the System's share of total bond proceeds, (ii)
21
any amounts received from the General Revenue Fund in fiscal
22
year 2011, and (iii) any reduction in bond proceeds due to the
23
issuance of discounted bonds, if applicable.
24

Beginning in State fiscal year 2046,
except as otherwise
25
provided in this Section,
the minimum State contribution for
26
each fiscal year shall be the amount needed to maintain the

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1
total assets of the System at 90% of the total actuarial
2
liabilities of the System.
3

Amounts received by the System pursuant to Section 25 of
4
the Budget Stabilization Act or Section 8.12 of the State
5
Finance Act in any fiscal year do not reduce and do not
6
constitute payment of any portion of the minimum State
7
contribution required under this Article in that fiscal year.
8
Such amounts shall not reduce, and shall not be included in the
9
calculation of, the required State contributions under this
10
Article in any future year until the System has reached a
11
funding ratio of at least 90%. A reference in this Article to
12
the "required State contribution" or any substantially similar
13
term does not include or apply to any amounts payable to the
14
System under Section 25 of the Budget Stabilization Act.
15

Notwithstanding any other provision of this Section, the
16
required State contribution for State fiscal year 2005 and for
17
fiscal year 2008 and each fiscal year thereafter, as
18
calculated under this Section and certified under Section
19
15-165, shall not exceed an amount equal to (i) the amount of
20
the required State contribution that would have been
21
calculated under this Section for that fiscal year if the
22
System had not received any payments under subsection (d) of
23
Section 7.2 of the General Obligation Bond Act, minus (ii) the
24
portion of the State's total debt service payments for that
25
fiscal year on the bonds issued in fiscal year 2003 for the
26
purposes of that Section 7.2, as determined and certified by

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the Comptroller, that is the same as the System's portion of
2
the total moneys distributed under subsection (d) of Section
3
7.2 of the General Obligation Bond Act. In determining this
4
maximum for State fiscal years 2008 through 2010, however, the
5
amount referred to in item (i) shall be increased, as a
6
percentage of the applicable employee payroll, in equal
7
increments calculated from the sum of the required State
8
contribution for State fiscal year 2007 plus the applicable
9
portion of the State's total debt service payments for fiscal
10
year 2007 on the bonds issued in fiscal year 2003 for the
11
purposes of Section 7.2 of the General Obligation Bond Act, so
12
that, by State fiscal year 2011, the State is contributing at
13
the rate otherwise required under this Section.
14

(a-2) Beginning in fiscal year 2018, each employer under
15
this Article shall pay to the System a required contribution
16
determined as a percentage of projected payroll and sufficient
17
to produce an annual amount equal to:
18

(i) for each of fiscal years 2018, 2019, and 2020, the
19

defined benefit normal cost of the defined benefit plan,
20

less the employee contribution, for each employee of that
21

employer who has elected or who is deemed to have elected
22

the benefits under Section 1-161 or who has made the
23

election under subsection (c) of Section 1-161; for fiscal
24

year 2021 and each fiscal year thereafter, the defined
25

benefit normal cost of the defined benefit plan, less the
26

employee contribution, plus 2%, for each employee of that

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1

employer who has elected or who is deemed to have elected
2

the benefits under Section 1-161 or who has made the
3

election under subsection (c) of Section 1-161; plus
4

(ii) the amount required for that fiscal year to
5

amortize any unfunded actuarial accrued liability
6

associated with the present value of liabilities
7

attributable to the employer's account under Section
8

15-155.2, determined as a level percentage of payroll over
9

a 30-year rolling amortization period.
10

In determining contributions required under item (i) of
11
this subsection, the System shall determine an aggregate rate
12
for all employers, expressed as a percentage of projected
13
payroll.
14

In determining the contributions required under item (ii)
15
of this subsection, the amount shall be computed by the System
16
on the basis of the actuarial assumptions and tables used in
17
the most recent actuarial valuation of the System that is
18
available at the time of the computation.
19

The contributions required under this subsection (a-2)
20
shall be paid by an employer concurrently with that employer's
21
payroll payment period. The State, as the actual employer of
22
an employee, shall make the required contributions under this
23
subsection.
24

As used in this subsection, "academic year" means the
25
12-month period beginning September 1.
26

(b) If an employee is paid from trust or federal funds, the

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1
employer shall pay to the Board contributions from those funds
2
which are sufficient to cover the accruing normal costs on
3
behalf of the employee. However, universities having employees
4
who are compensated out of local auxiliary funds, income
5
funds, or service enterprise funds are not required to pay
6
such contributions on behalf of those employees. The local
7
auxiliary funds, income funds, and service enterprise funds of
8
universities shall not be considered trust funds for the
9
purpose of this Article, but funds of alumni associations,
10
foundations, and athletic associations which are affiliated
11
with the universities included as employers under this Article
12
and other employers which do not receive State appropriations
13
are considered to be trust funds for the purpose of this
14
Article.
15

(b-1) The City of Urbana and the City of Champaign shall
16
each make employer contributions to this System for their
17
respective firefighter employees who participate in this
18
System pursuant to subsection (h) of Section 15-107. The rate
19
of contributions to be made by those municipalities shall be
20
determined annually by the Board on the basis of the actuarial
21
assumptions adopted by the Board and the recommendations of
22
the actuary, and shall be expressed as a percentage of salary
23
for each such employee. The Board shall certify the rate to the
24
affected municipalities as soon as may be practical. The
25
employer contributions required under this subsection shall be
26
remitted by the municipality to the System at the same time and

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1
in the same manner as employee contributions.
2

(c) Through State fiscal year 1995: The total employer
3
contribution shall be apportioned among the various funds of
4
the State and other employers, whether trust, federal, or
5
other funds, in accordance with actuarial procedures approved
6
by the Board. State of Illinois contributions for employers
7
receiving State appropriations for personal services shall be
8
payable from appropriations made to the employers or to the
9
System. The contributions for Class I community colleges
10
covering earnings other than those paid from trust and federal
11
funds, shall be payable solely from appropriations to the
12
Illinois Community College Board or the System for employer
13
contributions.
14

(d) Beginning in State fiscal year 1996, the required
15
State contributions to the System shall be appropriated
16
directly to the System and shall be payable through vouchers
17
issued in accordance with subsection (c) of Section 15-165,
18
except as provided in subsection (g).
19

(e) The State Comptroller shall draw warrants payable to
20
the System upon proper certification by the System or by the
21
employer in accordance with the appropriation laws and this
22
Code.
23

(f) Normal costs under this Section means liability for
24
pensions and other benefits which accrues to the System
25
because of the credits earned for service rendered by the
26
participants during the fiscal year and expenses of

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1
administering the System, but shall not include the principal
2
of or any redemption premium or interest on any bonds issued by
3
the Board or any expenses incurred or deposits required in
4
connection therewith.
5

(g) If the amount of a participant's earnings for any
6
academic year used to determine the final rate of earnings,
7
determined on a full-time equivalent basis, exceeds the amount
8
of his or her earnings with the same employer for the previous
9
academic year, determined on a full-time equivalent basis, by
10
more than 6%, the participant's employer shall pay to the
11
System, in addition to all other payments required under this
12
Section and in accordance with guidelines established by the
13
System, the present value of the increase in benefits
14
resulting from the portion of the increase in earnings that is
15
in excess of 6%. This present value shall be computed by the
16
System on the basis of the actuarial assumptions and tables
17
used in the most recent actuarial valuation of the System that
18
is available at the time of the computation. The System may
19
require the employer to provide any pertinent information or
20
documentation.
21

Whenever it determines that a payment is or may be
22
required under this subsection (g), the System shall calculate
23
the amount of the payment and bill the employer for that
24
amount. The bill shall specify the calculations used to
25
determine the amount due. If the employer disputes the amount
26
of the bill, it may, within 30 days after receipt of the bill,

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1
apply to the System in writing for a recalculation. The
2
application must specify in detail the grounds of the dispute
3
and, if the employer asserts that the calculation is subject
4
to subsection (h), (h-5), or (i) of this Section, must include
5
an affidavit setting forth and attesting to all facts within
6
the employer's knowledge that are pertinent to the
7
applicability of that subsection. Upon receiving a timely
8
application for recalculation, the System shall review the
9
application and, if appropriate, recalculate the amount due.
10

The employer contributions required under this subsection
11
(g) may be paid in the form of a lump sum within 90 days after
12
receipt of the bill. If the employer contributions are not
13
paid within 90 days after receipt of the bill, then interest
14
will be charged at a rate equal to the System's annual
15
actuarially assumed rate of return on investment compounded
16
annually from the 91st day after receipt of the bill. Payments
17
must be concluded within 3 years after the employer's receipt
18
of the bill.
19

When assessing payment for any amount due under this
20
subsection (g), the System shall include earnings, to the
21
extent not established by a participant under Section
22
15-113.11 or 15-113.12, that would have been paid to the
23
participant had the participant not taken (i) periods of
24
voluntary or involuntary furlough occurring on or after July
25
1, 2015 and on or before June 30, 2017 or (ii) periods of
26
voluntary pay reduction in lieu of furlough occurring on or

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1
after July 1, 2015 and on or before June 30, 2017. Determining
2
earnings that would have been paid to a participant had the
3
participant not taken periods of voluntary or involuntary
4
furlough or periods of voluntary pay reduction shall be the
5
responsibility of the employer, and shall be reported in a
6
manner prescribed by the System.
7

This subsection (g) does not apply to (1) Tier 2 hybrid
8
plan members and (2) Tier 2 defined benefit members who first
9
participate under this Article on or after the implementation
10
date of the Optional Hybrid Plan.
11

(g-1) (Blank).
12

(h) This subsection (h) applies only to payments made or
13
salary increases given on or after June 1, 2005 but before July
14
1, 2011. The changes made by Public Act 94-1057 shall not
15
require the System to refund any payments received before July
16
31, 2006 (the effective date of Public Act 94-1057).
17

When assessing payment for any amount due under subsection
18
(g), the System shall exclude earnings increases paid to
19
participants under contracts or collective bargaining
20
agreements entered into, amended, or renewed before June 1,
21
2005.
22

When assessing payment for any amount due under subsection
23
(g), the System shall exclude earnings increases paid to a
24
participant at a time when the participant is 10 or more years
25
from retirement eligibility under Section 15-135.
26

When assessing payment for any amount due under subsection

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1
(g), the System shall exclude earnings increases resulting
2
from overload work, including a contract for summer teaching,
3
or overtime when the employer has certified to the System, and
4
the System has approved the certification, that: (i) in the
5
case of overloads (A) the overload work is for the sole purpose
6
of academic instruction in excess of the standard number of
7
instruction hours for a full-time employee occurring during
8
the academic year that the overload is paid and (B) the
9
earnings increases are equal to or less than the rate of pay
10
for academic instruction computed using the participant's
11
current salary rate and work schedule; and (ii) in the case of
12
overtime, the overtime was necessary for the educational
13
mission.
14

When assessing payment for any amount due under subsection
15
(g), the System shall exclude any earnings increase resulting
16
from (i) a promotion for which the employee moves from one
17
classification to a higher classification under the State
18
Universities Civil Service System, (ii) a promotion in
19
academic rank for a tenured or tenure-track faculty position,
20
or (iii) a promotion that the Illinois Community College Board
21
has recommended in accordance with subsection (k) of this
22
Section. These earnings increases shall be excluded only if
23
the promotion is to a position that has existed and been filled
24
by a member for no less than one complete academic year and the
25
earnings increase as a result of the promotion is an increase
26
that results in an amount no greater than the average salary

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1
paid for other similar positions.
2

(h-5) When assessing payment for any amount due under
3
subsection (g), the System shall exclude any earnings increase
4
paid in an academic year beginning on or after July 1, 2020
5
resulting from overload work performed in an academic year
6
subsequent to an academic year in which the employer was
7
unable to offer or allow to be conducted overload work due to
8
an emergency declaration limiting such activities.
9

(i) When assessing payment for any amount due under
10
subsection (g), the System shall exclude any salary increase
11
described in subsection (h) of this Section given on or after
12
July 1, 2011 but before July 1, 2014 under a contract or
13
collective bargaining agreement entered into, amended, or
14
renewed on or after June 1, 2005 but before July 1, 2011.
15
Except as provided in subsection (h-5), any payments made or
16
salary increases given after June 30, 2014 shall be used in
17
assessing payment for any amount due under subsection (g) of
18
this Section.
19

(j) The System shall prepare a report and file copies of
20
the report with the Governor and the General Assembly by
21
January 1, 2007 that contains all of the following
22
information:
23

(1) The number of recalculations required by the
24

changes made to this Section by Public Act 94-1057 for
25

each employer.
26

(2) The dollar amount by which each employer's

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1

contribution to the System was changed due to
2

recalculations required by Public Act 94-1057.
3

(3) The total amount the System received from each
4

employer as a result of the changes made to this Section by
5

Public Act 94-4.
6

(4) The increase in the required State contribution
7

resulting from the changes made to this Section by Public
8

Act 94-1057.
9

(j-5) For State fiscal years beginning on or after July 1,
10
2017, if the amount of a participant's earnings for any State
11
fiscal year exceeds the amount of the salary set by law for the
12
Governor that is in effect on July 1 of that fiscal year, the
13
participant's employer shall pay to the System, in addition to
14
all other payments required under this Section and in
15
accordance with guidelines established by the System, an
16
amount determined by the System to be equal to the employer
17
normal cost, as established by the System and expressed as a
18
total percentage of payroll, multiplied by the amount of
19
earnings in excess of the amount of the salary set by law for
20
the Governor. This amount shall be computed by the System on
21
the basis of the actuarial assumptions and tables used in the
22
most recent actuarial valuation of the System that is
23
available at the time of the computation. The System may
24
require the employer to provide any pertinent information or
25
documentation.
26

Whenever it determines that a payment is or may be

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1
required under this subsection, the System shall calculate the
2
amount of the payment and bill the employer for that amount.
3
The bill shall specify the calculation used to determine the
4
amount due. If the employer disputes the amount of the bill, it
5
may, within 30 days after receipt of the bill, apply to the
6
System in writing for a recalculation. The application must
7
specify in detail the grounds of the dispute. Upon receiving a
8
timely application for recalculation, the System shall review
9
the application and, if appropriate, recalculate the amount
10
due.
11

The employer contributions required under this subsection
12
may be paid in the form of a lump sum within 90 days after
13
issuance of the bill. If the employer contributions are not
14
paid within 90 days after issuance of the bill, then interest
15
will be charged at a rate equal to the System's annual
16
actuarially assumed rate of return on investment compounded
17
annually from the 91st day after issuance of the bill. All
18
payments must be received within 3 years after issuance of the
19
bill. If the employer fails to make complete payment,
20
including applicable interest, within 3 years, then the System
21
may, after giving notice to the employer, certify the
22
delinquent amount to the State Comptroller, and the
23
Comptroller shall thereupon deduct the certified delinquent
24
amount from State funds payable to the employer and pay them
25
instead to the System.
26

This subsection (j-5) does not apply to a participant's

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1
earnings to the extent an employer pays the employer normal
2
cost of such earnings.
3

The changes made to this subsection (j-5) by Public Act
4
100-624 are intended to apply retroactively to July 6, 2017
5
(the effective date of Public Act 100-23).
6

(k) The Illinois Community College Board shall adopt rules
7
for recommending lists of promotional positions submitted to
8
the Board by community colleges and for reviewing the
9
promotional lists on an annual basis. When recommending
10
promotional lists, the Board shall consider the similarity of
11
the positions submitted to those positions recognized for
12
State universities by the State Universities Civil Service
13
System. The Illinois Community College Board shall file a copy
14
of its findings with the System. The System shall consider the
15
findings of the Illinois Community College Board when making
16
determinations under this Section. The System shall not
17
exclude any earnings increases resulting from a promotion when
18
the promotion was not submitted by a community college.
19
Nothing in this subsection (k) shall require any community
20
college to submit any information to the Community College
21
Board.
22

(l) For purposes of determining the required State
23
contribution to the System, the value of the System's assets
24
shall be equal to the actuarial value of the System's assets,
25
which shall be calculated as follows:
26

As of June 30, 2008, the actuarial value of the System's

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assets shall be equal to the market value of the assets as of
2
that date. In determining the actuarial value of the System's
3
assets for fiscal years after June 30, 2008, any actuarial
4
gains or losses from investment return incurred in a fiscal
5
year shall be recognized in equal annual amounts over the
6
5-year period following that fiscal year.
7

(m) For purposes of determining the required State
8
contribution to the system for a particular year, the
9
actuarial value of assets shall be assumed to earn a rate of
10
return equal to the system's actuarially assumed rate of
11
return.
12
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
13
102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
14
5-13-22.)

15

(40 ILCS 5/16-158)

(from Ch. 108 1/2, par. 16-158)
16

Sec. 16-158.
Contributions by State and other employing
17
units.
18

(a) The State shall make contributions to the System by
19
means of appropriations from the Common School Fund and other
20
State funds of amounts which, together with other employer
21
contributions, employee contributions, investment income, and
22
other income, will be sufficient to meet the cost of
23
maintaining and administering the System on a 90% funded basis
24
in accordance with actuarial recommendations.
25

The Board shall determine the amount of State

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contributions required for each fiscal year on the basis of
2
the actuarial tables and other assumptions adopted by the
3
Board and the recommendations of the actuary, using the
4
formula in subsection (b-3).
5

(a-1) Annually, on or before November 15 until November
6
15, 2011, the Board shall certify to the Governor the amount of
7
the required State contribution for the coming fiscal year.
8
The certification under this subsection (a-1) shall include a
9
copy of the actuarial recommendations upon which it is based
10
and shall specifically identify the System's projected State
11
normal cost for that fiscal year.
12

On or before May 1, 2004, the Board shall recalculate and
13
recertify to the Governor the amount of the required State
14
contribution to the System for State fiscal year 2005, taking
15
into account the amounts appropriated to and received by the
16
System under subsection (d) of Section 7.2 of the General
17
Obligation Bond Act.
18

On or before July 1, 2005, the Board shall recalculate and
19
recertify to the Governor the amount of the required State
20
contribution to the System for State fiscal year 2006, taking
21
into account the changes in required State contributions made
22
by Public Act 94-4.
23

On or before April 1, 2011, the Board shall recalculate
24
and recertify to the Governor the amount of the required State
25
contribution to the System for State fiscal year 2011,
26
applying the changes made by Public Act 96-889 to the System's

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assets and liabilities as of June 30, 2009 as though Public Act
2
96-889 was approved on that date.
3

(a-5) On or before November 1 of each year, beginning
4
November 1, 2012, the Board shall submit to the State Actuary,
5
the Governor, and the General Assembly a proposed
6
certification of the amount of the required State contribution
7
to the System for the next fiscal year, along with all of the
8
actuarial assumptions, calculations, and data upon which that
9
proposed certification is based. On or before January 1 of
10
each year, beginning January 1, 2013, the State Actuary shall
11
issue a preliminary report concerning the proposed
12
certification and identifying, if necessary, recommended
13
changes in actuarial assumptions that the Board must consider
14
before finalizing its certification of the required State
15
contributions. On or before January 15, 2013 and each January
16
15 thereafter, the Board shall certify to the Governor and the
17
General Assembly the amount of the required State contribution
18
for the next fiscal year. The Board's certification must note
19
any deviations from the State Actuary's recommended changes,
20
the reason or reasons for not following the State Actuary's
21
recommended changes, and the fiscal impact of not following
22
the State Actuary's recommended changes on the required State
23
contribution.
24

(a-10) By November 1, 2017, the Board shall recalculate
25
and recertify to the State Actuary, the Governor, and the
26
General Assembly the amount of the State contribution to the

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System for State fiscal year 2018, taking into account the
2
changes in required State contributions made by Public Act
3
100-23. The State Actuary shall review the assumptions and
4
valuations underlying the Board's revised certification and
5
issue a preliminary report concerning the proposed
6
recertification and identifying, if necessary, recommended
7
changes in actuarial assumptions that the Board must consider
8
before finalizing its certification of the required State
9
contributions. The Board's final certification must note any
10
deviations from the State Actuary's recommended changes, the
11
reason or reasons for not following the State Actuary's
12
recommended changes, and the fiscal impact of not following
13
the State Actuary's recommended changes on the required State
14
contribution.
15

(a-15) On or after June 15, 2019, but no later than June
16
30, 2019, the Board shall recalculate and recertify to the
17
Governor and the General Assembly the amount of the State
18
contribution to the System for State fiscal year 2019, taking
19
into account the changes in required State contributions made
20
by Public Act 100-587. The recalculation shall be made using
21
assumptions adopted by the Board for the original fiscal year
22
2019 certification. The monthly voucher for the 12th month of
23
fiscal year 2019 shall be paid by the Comptroller after the
24
recertification required pursuant to this subsection is
25
submitted to the Governor, Comptroller, and General Assembly.
26
The recertification submitted to the General Assembly shall be

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filed with the Clerk of the House of Representatives and the
2
Secretary of the Senate in electronic form only, in the manner
3
that the Clerk and the Secretary shall direct.
4

(b) Through State fiscal year 1995, the State
5
contributions shall be paid to the System in accordance with
6
Section 18-7 of the School Code.
7

(b-1) Unless otherwise directed by the Comptroller under
8
subsection (b-1.1), the Board shall submit vouchers for
9
payment of State contributions to the System for the
10
applicable month on the 15th day of each month, or as soon
11
thereafter as may be practicable. The amount vouchered for a
12
monthly payment shall total one-twelfth of the required annual
13
State contribution certified under subsection (a-1).
14

(b-1.1) Beginning in State fiscal year 2025, if the
15
Comptroller requests that the Board submit, during a State
16
fiscal year, vouchers for multiple monthly payments for the
17
advance payment of State contributions due to the System for
18
that State fiscal year, then the Board shall submit those
19
additional vouchers as directed by the Comptroller,
20
notwithstanding subsection (b-1). Unless an act of
21
appropriations provides otherwise, nothing in this Section
22
authorizes the Board to submit, in a State fiscal year,
23
vouchers for the payment of State contributions to the System
24
in an amount that exceeds the rate of payroll that is certified
25
by the System under this Section for that State fiscal year.
26

(b-1.2) The vouchers described in subsections (b-1) and

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(b-1.1) shall be paid by the State Comptroller and Treasurer
2
by warrants drawn on the funds appropriated to the System for
3
that fiscal year.
4

If in any month the amount remaining unexpended from all
5
other appropriations to the System for the applicable fiscal
6
year (including the appropriations to the System under Section
7
8.12 of the State Finance Act and Section 1 of the State
8
Pension Funds Continuing Appropriation Act) is less than the
9
amount lawfully vouchered under this subsection, the
10
difference shall be paid from the Common School Fund under the
11
continuing appropriation authority provided in Section 1.1 of
12
the State Pension Funds Continuing Appropriation Act.
13

(b-2) Allocations from the Common School Fund apportioned
14
to school districts not coming under this System shall not be
15
diminished or affected by the provisions of this Article.
16

(b-3) For State fiscal years 2012 through 2045,
except as
17
otherwise provided in this Section,
the minimum contribution
18
to the System to be made by the State for each fiscal year
19
shall be an amount determined by the System to be sufficient to
20
bring the total assets of the System up to 90% of the total
21
actuarial liabilities of the System by the end of State fiscal
22
year 2045. In making these determinations, the required State
23
contribution shall be calculated each year as a level
24
percentage of payroll over the years remaining to and
25
including fiscal year 2045 and shall be determined under the
26
projected unit credit actuarial cost method.

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1

If the System determines that the minimum contribution to
2
the System is sufficient to bring the total assets of the
3
System up to 90% of the total actuarial liabilities of the
4
System in the following fiscal year, then the System shall
5
determine the actuarially determined contribution rate for the
6
following year in accordance with this paragraph. Beginning
7
the first State fiscal year after the total assets of the
8
System are at least 90% of the total actuarial liabilities of
9
the System and each State fiscal year thereafter, the
10
contribution to the System shall be calculated based on an
11
actuarially determined contribution rate in accordance with
12
the following:
13

(1) The Board, with the consultation of a competent
14

actuary, shall calculate the actuarially determined
15

contribution rate for each fiscal year.
16

(2) The System shall calculate the actuarially
17

determined contribution rate in accordance with the
18

Governmental Accounting Research System and officially
19

adopted actuarial assumptions. The System shall use this
20

valuation to calculate the actuarially determined
21

contribution rate for the next fiscal year.
22

(3) No later than January 1 of each year in which this
23

paragraph applies, the System shall report the actuarially
24

determined contribution rate for the following fiscal year
25

to the Governor, the Auditor General, the State Treasurer,
26

and the General Assembly.

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1

(4) After the calculation of the actuarially
2

determined contribution rate under item (2), the General
3

Assembly and the System shall calculate the necessary
4

amount to account for any changes in appropriations
5

necessary to fund the minimum contribution, including
6

changes in amounts for the employer's share of the
7

actuarially determined contribution rate.
8

(5) The actuarially determined contribution rate for a
9

fiscal year shall not be less than the amount for the
10

preceding fiscal year if the ratio of the System's total
11

assets to the System's total liabilities is less than 90%.
12

(6) In no event shall the actuarially determined
13

contribution rate be less than the normal cost for that
14

fiscal year.

15

For each of State fiscal years 2018, 2019, and 2020, the
16
State shall make an additional contribution to the System
17
equal to 2% of the total payroll of each employee who is deemed
18
to have elected the benefits under Section 1-161 or who has
19
made the election under subsection (c) of Section 1-161.
20

A change in an actuarial or investment assumption that
21
increases or decreases the required State contribution and
22
first applies in State fiscal year 2018 or thereafter shall be
23
implemented in equal annual amounts over a 5-year period
24
beginning in the State fiscal year in which the actuarial
25
change first applies to the required State contribution.
26

A change in an actuarial or investment assumption that

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1
increases or decreases the required State contribution and
2
first applied to the State contribution in fiscal year 2014,
3
2015, 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
14
contribution to the System, as a percentage of the applicable
15
employee payroll, shall be increased in equal annual
16
increments so that by State fiscal year 2011, the State is
17
contributing at the rate required under this Section; except
18
that in the following specified State fiscal years, the State
19
contribution to the System shall not be less than the
20
following indicated percentages of the applicable employee
21
payroll, even if the indicated percentage will produce a State
22
contribution in excess of the amount otherwise required under
23
this subsection and subsection (a), and notwithstanding any
24
contrary certification made under subsection (a-1) before May
25
27, 1998 (the effective date of Public Act 90-582): 10.02% in
26
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY

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2002; 12.86% in FY 2003; and 13.56% in FY 2004.
2

Notwithstanding any other provision of this Article, the
3
total required State contribution for State fiscal year 2006
4
is $534,627,700.
5

Notwithstanding any other provision of this Article, the
6
total required State contribution for State fiscal year 2007
7
is $738,014,500.
8

For each of State fiscal years 2008 through 2009, the
9
State contribution to the System, as a percentage of the
10
applicable employee payroll, shall be increased in equal
11
annual increments from the required State contribution for
12
State fiscal year 2007, so that by State fiscal year 2011, the
13
State is contributing at the rate otherwise required under
14
this Section.
15

Notwithstanding any other provision of this Article, the
16
total required State contribution for State fiscal year 2010
17
is $2,089,268,000 and shall be made from the proceeds of bonds
18
sold in fiscal year 2010 pursuant to Section 7.2 of the General
19
Obligation Bond Act, less (i) the pro rata share of bond sale
20
expenses determined by the System's share of total bond
21
proceeds, (ii) any amounts received from the Common School
22
Fund in fiscal year 2010, and (iii) any reduction in bond
23
proceeds due to the issuance of discounted bonds, if
24
applicable.
25

Notwithstanding any other provision of this Article, the
26
total required State contribution for State fiscal year 2011

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1
is the amount recertified by the System on or before April 1,
2
2011 pursuant to subsection (a-1) of this Section and shall be
3
made from the proceeds of bonds sold in fiscal year 2011
4
pursuant to Section 7.2 of the General Obligation Bond Act,
5
less (i) the pro rata share of bond sale expenses determined by
6
the System's share of total bond proceeds, (ii) any amounts
7
received from the Common School Fund in fiscal year 2011, and
8
(iii) any reduction in bond proceeds due to the issuance of
9
discounted bonds, if applicable. This amount shall include, in
10
addition to the amount certified by the System, an amount
11
necessary to meet employer contributions required by the State
12
as an employer under paragraph (e) of this Section, which may
13
also be used by the System for contributions required by
14
paragraph (a) of Section 16-127.
15

Beginning in State fiscal year 2046,
except as otherwise
16
provided in this Section,
the minimum State contribution for
17
each fiscal year shall be the amount needed to maintain the
18
total assets of the System at 90% of the total actuarial
19
liabilities of the System.
20

Amounts received by the System pursuant to Section 25 of
21
the Budget Stabilization Act or Section 8.12 of the State
22
Finance Act in any fiscal year do not reduce and do not
23
constitute payment of any portion of the minimum State
24
contribution required under this Article in that fiscal year.
25
Such amounts shall not reduce, and shall not be included in the
26
calculation of, the required State contributions under this

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1
Article in any future year until the System has reached a
2
funding ratio of at least 90%. A reference in this Article to
3
the "required State contribution" or any substantially similar
4
term does not include or apply to any amounts payable to the
5
System under Section 25 of the Budget Stabilization Act.
6

Notwithstanding any other provision of this Section, the
7
required State contribution for State fiscal year 2005 and for
8
fiscal year 2008 and each fiscal year thereafter, as
9
calculated under this Section and certified under subsection
10
(a-1), shall not exceed an amount equal to (i) the amount of
11
the required State contribution that would have been
12
calculated under this Section for that fiscal year if the
13
System had not received any payments under subsection (d) of
14
Section 7.2 of the General Obligation Bond Act, minus (ii) the
15
portion of the State's total debt service payments for that
16
fiscal year on the bonds issued in fiscal year 2003 for the
17
purposes of that Section 7.2, as determined and certified by
18
the Comptroller, that is the same as the System's portion of
19
the total moneys distributed under subsection (d) of Section
20
7.2 of the General Obligation Bond Act. In determining this
21
maximum for State fiscal years 2008 through 2010, however, the
22
amount referred to in item (i) shall be increased, as a
23
percentage of the applicable employee payroll, in equal
24
increments calculated from the sum of the required State
25
contribution for State fiscal year 2007 plus the applicable
26
portion of the State's total debt service payments for fiscal

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1
year 2007 on the bonds issued in fiscal year 2003 for the
2
purposes of Section 7.2 of the General Obligation Bond Act, so
3
that, by State fiscal year 2011, the State is contributing at
4
the rate otherwise required under this Section.
5

(b-4) Beginning in fiscal year 2018, each employer under
6
this Article shall pay to the System a required contribution
7
determined as a percentage of projected payroll and sufficient
8
to produce an annual amount equal to:
9

(i) for each of fiscal years 2018, 2019, and 2020, the
10

defined benefit normal cost of the defined benefit plan,
11

less the employee contribution, for each employee of that
12

employer who has elected or who is deemed to have elected
13

the benefits under Section 1-161 or who has made the
14

election under subsection (b) of Section 1-161; for fiscal
15

year 2021 and each fiscal year thereafter, the defined
16

benefit normal cost of the defined benefit plan, less the
17

employee contribution, plus 2%, for each employee of that
18

employer who has elected or who is deemed to have elected
19

the benefits under Section 1-161 or who has made the
20

election under subsection (b) of Section 1-161; plus
21

(ii) the amount required for that fiscal year to
22

amortize any unfunded actuarial accrued liability
23

associated with the present value of liabilities
24

attributable to the employer's account under Section
25

16-158.3, determined as a level percentage of payroll over
26

a 30-year rolling amortization period.

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1

In determining contributions required under item (i) of
2
this subsection, the System shall determine an aggregate rate
3
for all employers, expressed as a percentage of projected
4
payroll.
5

In determining the contributions required under item (ii)
6
of this subsection, the amount shall be computed by the System
7
on the basis of the actuarial assumptions and tables used in
8
the most recent actuarial valuation of the System that is
9
available at the time of the computation.
10

The contributions required under this subsection (b-4)
11
shall be paid by an employer concurrently with that employer's
12
payroll payment period. The State, as the actual employer of
13
an employee, shall make the required contributions under this
14
subsection.
15

(c) Payment of the required State contributions and of all
16
pensions, retirement annuities, death benefits, refunds, and
17
other benefits granted under or assumed by this System, and
18
all expenses in connection with the administration and
19
operation thereof, are obligations of the State.
20

If members are paid from special trust or federal funds
21
which are administered by the employing unit, whether school
22
district or other unit, the employing unit shall pay to the
23
System from such funds the full accruing retirement costs
24
based upon that service, which, beginning July 1, 2017, shall
25
be at a rate, expressed as a percentage of salary, equal to the
26
total employer's normal cost, expressed as a percentage of

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1
payroll, as determined by the System. Employer contributions,
2
based on salary paid to members from federal funds, may be
3
forwarded by the distributing agency of the State of Illinois
4
to the System prior to allocation, in an amount determined in
5
accordance with guidelines established by such agency and the
6
System. Any contribution for fiscal year 2015 collected as a
7
result of the change made by Public Act 98-674 shall be
8
considered a State contribution under subsection (b-3) of this
9
Section.
10

(d) Effective July 1, 1986, any employer of a teacher as
11
defined in paragraph (8) of Section 16-106 shall pay the
12
employer's normal cost of benefits based upon the teacher's
13
service, in addition to employee contributions, as determined
14
by the System. Such employer contributions shall be forwarded
15
monthly in accordance with guidelines established by the
16
System.
17

However, with respect to benefits granted under Section
18
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
19
of Section 16-106, the employer's contribution shall be 12%
20
(rather than 20%) of the member's highest annual salary rate
21
for each year of creditable service granted, and the employer
22
shall also pay the required employee contribution on behalf of
23
the teacher. For the purposes of Sections 16-133.4 and
24
16-133.5, a teacher as defined in paragraph (8) of Section
25
16-106 who is serving in that capacity while on leave of
26
absence from another employer under this Article shall not be

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considered an employee of the employer from which the teacher
2
is on leave.
3

(e) Beginning July 1, 1998, every employer of a teacher
4
shall pay to the System an employer contribution computed as
5
follows:
6

(1) Beginning July 1, 1998 through June 30, 1999, the
7

employer contribution shall be equal to 0.3% of each
8

teacher's salary.
9

(2) Beginning July 1, 1999 and thereafter, the
10

employer contribution shall be equal to 0.58% of each
11

teacher's salary.
12
The school district or other employing unit may pay these
13
employer contributions out of any source of funding available
14
for that purpose and shall forward the contributions to the
15
System on the schedule established for the payment of member
16
contributions.
17

These employer contributions are intended to offset a
18
portion of the cost to the System of the increases in
19
retirement benefits resulting from Public Act 90-582.
20

Each employer of teachers is entitled to a credit against
21
the contributions required under this subsection (e) with
22
respect to salaries paid to teachers for the period January 1,
23
2002 through June 30, 2003, equal to the amount paid by that
24
employer under subsection (a-5) of Section 6.6 of the State
25
Employees Group Insurance Act of 1971 with respect to salaries
26
paid to teachers for that period.

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The additional 1% employee contribution required under
2
Section 16-152 by Public Act 90-582 is the responsibility of
3
the teacher and not the teacher's employer, unless the
4
employer agrees, through collective bargaining or otherwise,
5
to make the contribution on behalf of the teacher.
6

If an employer is required by a contract in effect on May
7
1, 1998 between the employer and an employee organization to
8
pay, on behalf of all its full-time employees covered by this
9
Article, all mandatory employee contributions required under
10
this Article, then the employer shall be excused from paying
11
the employer contribution required under this subsection (e)
12
for the balance of the term of that contract. The employer and
13
the employee organization shall jointly certify to the System
14
the existence of the contractual requirement, in such form as
15
the System may prescribe. This exclusion shall cease upon the
16
termination, extension, or renewal of the contract at any time
17
after May 1, 1998.
18

(f) If the amount of a teacher's salary for any school year
19
used to determine final average salary exceeds the member's
20
annual full-time salary rate with the same employer for the
21
previous school year by more than 6%, the teacher's employer
22
shall pay to the System, in addition to all other payments
23
required under this Section and in accordance with guidelines
24
established by the System, the present value of the increase
25
in benefits resulting from the portion of the increase in
26
salary that is in excess of 6%. This present value shall be

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computed by the System on the basis of the actuarial
2
assumptions and tables used in the most recent actuarial
3
valuation of the System that is available at the time of the
4
computation. If a teacher's salary for the 2005-2006 school
5
year is used to determine final average salary under this
6
subsection (f), then the changes made to this subsection (f)
7
by Public Act 94-1057 shall apply in calculating whether the
8
increase in his or her salary is in excess of 6%. For the
9
purposes of this Section, change in employment under Section
10
10-21.12 of the School Code on or after June 1, 2005 shall
11
constitute a change in employer. The System may require the
12
employer to provide any pertinent information or
13
documentation. The changes made to this subsection (f) by
14
Public Act 94-1111 apply without regard to whether the teacher
15
was in service on or after its effective date.
16

Whenever it determines that a payment is or may be
17
required under this subsection, the System shall calculate the
18
amount of the payment and bill the employer for that amount.
19
The bill shall specify the calculations used to determine the
20
amount due. If the employer disputes the amount of the bill, it
21
may, within 30 days after receipt of the bill, apply to the
22
System in writing for a recalculation. The application must
23
specify in detail the grounds of the dispute and, if the
24
employer asserts that the calculation is subject to subsection
25
(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
26
must include an affidavit setting forth and attesting to all

SB1668
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1
facts within the employer's knowledge that are pertinent to
2
the applicability of that subsection. Upon receiving a timely
3
application for recalculation, the System shall review the
4
application and, if appropriate, recalculate the amount due.

5

The employer contributions required under this subsection
6
(f) may be paid in the form of a lump sum within 90 days after
7
receipt of the bill. If the employer contributions are not
8
paid within 90 days after receipt of the bill, then interest
9
will be charged at a rate equal to the System's annual
10
actuarially assumed rate of return on investment compounded
11
annually from the 91st day after receipt of the bill. Payments
12
must be concluded within 3 years after the employer's receipt
13
of the bill.
14

(f-1) (Blank).
15

(g) This subsection (g) applies only to payments made or
16
salary increases given on or after June 1, 2005 but before July
17
1, 2011. The changes made by Public Act 94-1057 shall not
18
require the System to refund any payments received before July
19
31, 2006 (the effective date of Public Act 94-1057).
20

When assessing payment for any amount due under subsection
21
(f), the System shall exclude salary increases paid to
22
teachers under contracts or collective bargaining agreements
23
entered into, amended, or renewed before June 1, 2005.
24

When assessing payment for any amount due under subsection
25
(f), the System shall exclude salary increases paid to a
26
teacher at a time when the teacher is 10 or more years from

SB1668
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1
retirement eligibility under Section 16-132 or 16-133.2.
2

When assessing payment for any amount due under subsection
3
(f), the System shall exclude salary increases resulting from
4
overload work, including summer school, when the school
5
district has certified to the System, and the System has
6
approved the certification, that (i) the overload work is for
7
the sole purpose of classroom instruction in excess of the
8
standard number of classes for a full-time teacher in a school
9
district during a school year and (ii) the salary increases
10
are equal to or less than the rate of pay for classroom
11
instruction computed on the teacher's current salary and work
12
schedule.
13

When assessing payment for any amount due under subsection
14
(f), the System shall exclude a salary increase resulting from
15
a promotion (i) for which the employee is required to hold a
16
certificate or supervisory endorsement issued by the State
17
Teacher Certification Board that is a different certification
18
or supervisory endorsement than is required for the teacher's
19
previous position and (ii) to a position that has existed and
20
been filled by a member for no less than one complete academic
21
year and the salary increase from the promotion is an increase
22
that results in an amount no greater than the lesser of the
23
average salary paid for other similar positions in the
24
district requiring the same certification or the amount
25
stipulated in the collective bargaining agreement for a
26
similar position requiring the same certification.

SB1668
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1

When assessing payment for any amount due under subsection
2
(f), the System shall exclude any payment to the teacher from
3
the State of Illinois or the State Board of Education over
4
which the employer does not have discretion, notwithstanding
5
that the payment is included in the computation of final
6
average salary.
7

(g-5) When assessing payment for any amount due under
8
subsection (f), the System shall exclude salary increases
9
resulting from overload or stipend work performed in a school
10
year subsequent to a school year in which the employer was
11
unable to offer or allow to be conducted overload or stipend
12
work due to an emergency declaration limiting such activities.
13

(g-10) When assessing payment for any amount due under
14
subsection (f), the System shall exclude salary increases
15
resulting from increased instructional time that exceeded the
16
instructional time required during the 2019-2020 school year.
17

(g-15) When assessing payment for any amount due under
18
subsection (f), the System shall exclude salary increases
19
resulting from teaching summer school on or after May 1, 2021
20
and before September 15, 2022.
21

(g-20) When assessing payment for any amount due under
22
subsection (f), the System shall exclude salary increases
23
necessary to bring a school board in compliance with Public
24
Act 101-443 or this amendatory Act of the 103rd General
25
Assembly.
26

(h) When assessing payment for any amount due under

SB1668
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LRB104 09615 RPS 19680 b
1
subsection (f), the System shall exclude any salary increase
2
described in subsection (g) of this Section given on or after
3
July 1, 2011 but before July 1, 2014 under a contract or
4
collective bargaining agreement entered into, amended, or
5
renewed on or after June 1, 2005 but before July 1, 2011.
6
Notwithstanding any other provision of this Section, any
7
payments made or salary increases given after June 30, 2014
8
shall be used in assessing payment for any amount due under
9
subsection (f) of this Section.
10

(i) The System shall prepare a report and file copies of
11
the report with the Governor and the General Assembly by
12
January 1, 2007 that contains all of the following
13
information:
14

(1) The number of recalculations required by the
15

changes made to this Section by Public Act 94-1057 for
16

each employer.
17

(2) The dollar amount by which each employer's
18

contribution to the System was changed due to
19

recalculations required by Public Act 94-1057.
20

(3) The total amount the System received from each
21

employer as a result of the changes made to this Section by
22

Public Act 94-4.
23

(4) The increase in the required State contribution
24

resulting from the changes made to this Section by Public
25

Act 94-1057.
26

(i-5) For school years beginning on or after July 1, 2017,

SB1668
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1
if the amount of a participant's salary for any school year
2
exceeds the amount of the salary set for the Governor, the
3
participant's employer shall pay to the System, in addition to
4
all other payments required under this Section and in
5
accordance with guidelines established by the System, an
6
amount determined by the System to be equal to the employer
7
normal cost, as established by the System and expressed as a
8
total percentage of payroll, multiplied by the amount of
9
salary in excess of the amount of the salary set for the
10
Governor. This amount shall be computed by the System on the
11
basis of the actuarial assumptions and tables used in the most
12
recent actuarial valuation of the System that is available at
13
the time of the computation. The System may require the
14
employer to provide any pertinent information or
15
documentation.
16

Whenever it determines that a payment is or may be
17
required under this subsection, the System shall calculate the
18
amount of the payment and bill the employer for that amount.
19
The bill shall specify the calculations used to determine the
20
amount due. If the employer disputes the amount of the bill, it
21
may, within 30 days after receipt of the bill, apply to the
22
System in writing for a recalculation. The application must
23
specify in detail the grounds of the dispute. Upon receiving a
24
timely application for recalculation, the System shall review
25
the application and, if appropriate, recalculate the amount
26
due.

SB1668
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1

The employer contributions required under this subsection
2
may be paid in the form of a lump sum within 90 days after
3
receipt of the bill. If the employer contributions are not
4
paid within 90 days after receipt of the bill, then interest
5
will be charged at a rate equal to the System's annual
6
actuarially assumed rate of return on investment compounded
7
annually from the 91st day after receipt of the bill. Payments
8
must be concluded within 3 years after the employer's receipt
9
of the bill.
10

(j) For purposes of determining the required State
11
contribution to the System, the value of the System's assets
12
shall be equal to the actuarial value of the System's assets,
13
which shall be calculated as follows:
14

As of June 30, 2008, the actuarial value of the System's
15
assets shall be equal to the market value of the assets as of
16
that date. In determining the actuarial value of the System's
17
assets for fiscal years after June 30, 2008, any actuarial
18
gains or losses from investment return incurred in a fiscal
19
year shall be recognized in equal annual amounts over the
20
5-year period following that fiscal year.
21

(k) For purposes of determining the required State
22
contribution to the system for a particular year, the
23
actuarial value of assets shall be assumed to earn a rate of
24
return equal to the system's actuarially assumed rate of
25
return.
26
(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;

SB1668
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1
102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
2
8-11-23; 103-588, eff. 6-5-24.)

3

(40 ILCS 5/18-131)

(from Ch. 108 1/2, par. 18-131)
4

Sec. 18-131.
Financing; employer contributions.
5

(a) The State of Illinois shall make contributions to this
6
System by appropriations of the amounts which, together with
7
the contributions of participants, net earnings on
8
investments, and other income, will meet the costs of
9
maintaining and administering this System on a 90% funded
10
basis in accordance with actuarial recommendations.
11

(b) The Board shall determine the amount of State
12
contributions required for each fiscal year on the basis of
13
the actuarial tables and other assumptions adopted by the
14
Board and the prescribed rate of interest, using the formula
15
in subsection (c).
16

(c) For State fiscal years 2012 through 2045,
except as
17
otherwise provided in this Section,
the minimum contribution
18
to the System to be made by the State for each fiscal year
19
shall be an amount determined by the System to be sufficient to
20
bring the total assets of the System up to 90% of the total
21
actuarial liabilities of the System by the end of State fiscal
22
year 2045. In making these determinations, the required State
23
contribution shall be calculated each year as a level
24
percentage of payroll over the years remaining to and
25
including fiscal year 2045 and shall be determined under the

SB1668
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1
projected unit credit actuarial cost method.
2

If the System determines that the minimum contribution to
3
the System is sufficient to bring the total assets of the
4
System up to 90% of the total actuarial liabilities of the
5
System in the following fiscal year, then the System shall
6
determine the actuarially determined contribution rate for the
7
following year in accordance with this paragraph. Beginning
8
the first State fiscal year after the total assets of the
9
System are at least 90% of the total actuarial liabilities of
10
the System and each State fiscal year thereafter, the
11
contribution to the System shall be calculated based on an
12
actuarially determined contribution rate in accordance with
13
the following:
14

(1) The Board, with the consultation of a competent
15

actuary, shall calculate the actuarially determined
16

contribution rate for each fiscal year.
17

(2) The System shall calculate the actuarially
18

determined contribution rate in accordance with the
19

Governmental Accounting Research System and officially
20

adopted actuarial assumptions. The System shall use this
21

valuation to calculate the actuarially determined
22

contribution rate for the next fiscal year.
23

(3) No later than January 1 of each year in which this
24

paragraph applies, the System shall report the actuarially
25

determined contribution rate for the following fiscal year
26

to the Governor, the Auditor General, the State Treasurer,

SB1668
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LRB104 09615 RPS 19680 b
1

and the General Assembly.
2

(4) After the calculation of the actuarially
3

determined contribution rate under item (2), the General
4

Assembly and the System shall calculate the necessary
5

amount to account for any changes in appropriations
6

necessary to fund the minimum contribution, including
7

changes in amounts for the employer's share of the
8

actuarially determined contribution rate.
9

(5) The actuarially determined contribution rate for a
10

fiscal year shall not be less than the amount for the
11

preceding fiscal year if the ratio of the System's total
12

assets to the System's total liabilities is less than 90%.
13

(6) In no event shall the actuarially determined
14

contribution rate be less than the normal cost for that
15

fiscal year.

16

A change in an actuarial or investment assumption that
17
increases or decreases the required State contribution and
18
first applies in State fiscal year 2018 or thereafter shall be
19
implemented in equal annual amounts over a 5-year period
20
beginning in the State fiscal year in which the actuarial
21
change first applies to the required State contribution.
22

A change in an actuarial or investment assumption that
23
increases or decreases the required State contribution and
24
first applied to the State contribution in fiscal year 2014,
25
2015, 2016, or 2017 shall be implemented:
26

(i) as already applied in State fiscal years before

SB1668
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LRB104 09615 RPS 19680 b
1

2018; and
2

(ii) in the portion of the 5-year period beginning in
3

the State fiscal year in which the actuarial change first
4

applied that occurs in State fiscal year 2018 or
5

thereafter, by calculating the change in equal annual
6

amounts over that 5-year period and then implementing it
7

at the resulting annual rate in each of the remaining
8

fiscal years in that 5-year period.
9

For State fiscal years 1996 through 2005, the State
10
contribution to the System, as a percentage of the applicable
11
employee payroll, shall be increased in equal annual
12
increments so that by State fiscal year 2011, the State is
13
contributing at the rate required under this Section.
14

Notwithstanding any other provision of this Article, the
15
total required State contribution for State fiscal year 2006
16
is $29,189,400.
17

Notwithstanding any other provision of this Article, the
18
total required State contribution for State fiscal year 2007
19
is $35,236,800.
20

For each of State fiscal years 2008 through 2009, the
21
State contribution to the System, as a percentage of the
22
applicable employee payroll, shall be increased in equal
23
annual increments from the required State contribution for
24
State fiscal year 2007, so that by State fiscal year 2011, the
25
State is contributing at the rate otherwise required under
26
this Section.

SB1668
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1

Notwithstanding any other provision of this Article, the
2
total required State contribution for State fiscal year 2010
3
is $78,832,000 and shall be made from the proceeds of bonds
4
sold in fiscal year 2010 pursuant to Section 7.2 of the General
5
Obligation Bond Act, less (i) the pro rata share of bond sale
6
expenses determined by the System's share of total bond
7
proceeds, (ii) any amounts received from the General Revenue
8
Fund in fiscal year 2010, and (iii) any reduction in bond
9
proceeds due to the issuance of discounted bonds, if
10
applicable.
11

Notwithstanding any other provision of this Article, the
12
total required State contribution for State fiscal year 2011
13
is the amount recertified by the System on or before April 1,
14
2011 pursuant to Section 18-140 and shall be made from the
15
proceeds of bonds sold in fiscal year 2011 pursuant to Section
16
7.2 of the General Obligation Bond Act, less (i) the pro rata
17
share of bond sale expenses determined by the System's share
18
of total bond proceeds, (ii) any amounts received from the
19
General Revenue Fund in fiscal year 2011, and (iii) any
20
reduction in bond proceeds due to the issuance of discounted
21
bonds, if applicable.
22

Beginning in State fiscal year 2046,
except as otherwise
23
provided in this Section,
the minimum State contribution for
24
each fiscal year shall be the amount needed to maintain the
25
total assets of the System at 90% of the total actuarial
26
liabilities of the System.

SB1668
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LRB104 09615 RPS 19680 b
1

Amounts received by the System pursuant to Section 25 of
2
the Budget Stabilization Act or Section 8.12 of the State
3
Finance Act in any fiscal year do not reduce and do not
4
constitute payment of any portion of the minimum State
5
contribution required under this Article in that fiscal year.
6
Such amounts shall not reduce, and shall not be included in the
7
calculation of, the required State contributions under this
8
Article in any future year until the System has reached a
9
funding ratio of at least 90%. A reference in this Article to
10
the "required State contribution" or any substantially similar
11
term does not include or apply to any amounts payable to the
12
System under Section 25 of the Budget Stabilization Act.
13

Notwithstanding any other provision of this Section, the
14
required State contribution for State fiscal year 2005 and for
15
fiscal year 2008 and each fiscal year thereafter, as
16
calculated under this Section and certified under Section
17
18-140, shall not exceed an amount equal to (i) the amount of
18
the required State contribution that would have been
19
calculated under this Section for that fiscal year if the
20
System had not received any payments under subsection (d) of
21
Section 7.2 of the General Obligation Bond Act, minus (ii) the
22
portion of the State's total debt service payments for that
23
fiscal year on the bonds issued in fiscal year 2003 for the
24
purposes of that Section 7.2, as determined and certified by
25
the Comptroller, that is the same as the System's portion of
26
the total moneys distributed under subsection (d) of Section

SB1668
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LRB104 09615 RPS 19680 b
1
7.2 of the General Obligation Bond Act. In determining this
2
maximum for State fiscal years 2008 through 2010, however, the
3
amount referred to in item (i) shall be increased, as a
4
percentage of the applicable employee payroll, in equal
5
increments calculated from the sum of the required State
6
contribution for State fiscal year 2007 plus the applicable
7
portion of the State's total debt service payments for fiscal
8
year 2007 on the bonds issued in fiscal year 2003 for the
9
purposes of Section 7.2 of the General Obligation Bond Act, so
10
that, by State fiscal year 2011, the State is contributing at
11
the rate otherwise required under this Section.
12

(d) For purposes of determining the required State
13
contribution to the System, the value of the System's assets
14
shall be equal to the actuarial value of the System's assets,
15
which shall be calculated as follows:
16

As of June 30, 2008, the actuarial value of the System's
17
assets shall be equal to the market value of the assets as of
18
that date. In determining the actuarial value of the System's
19
assets for fiscal years after June 30, 2008, any actuarial
20
gains or losses from investment return incurred in a fiscal
21
year shall be recognized in equal annual amounts over the
22
5-year period following that fiscal year.
23

(e) For purposes of determining the required State
24
contribution to the system for a particular year, the
25
actuarial value of assets shall be assumed to earn a rate of
26
return equal to the system's actuarially assumed rate of

SB1668
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LRB104 09615 RPS 19680 b
1
return.
2
(Source: P.A. 100-23, eff. 7-6-17.)

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