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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4166

Introduced 3/4/2026, by Sen. Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Pension Code. Provides that the amendatory Act
may be referred to as the Pension Security and Cost Efficiency Act. Sets
forth findings. Provides that, beginning in State fiscal year 2027 and
continuing through State fiscal year 2045, the State shall make the
required annual State contributions to the 5 State-funded retirement
systems on the first day of the fiscal year. For State fiscal years 2027
through 2031, authorizes, if the State Actuary makes a specified written
certification, up to $6,000,000,000 in Pension Obligation Bonds to be used
for the sole purpose of reducing the principal balance of unfunded
liabilities of the 5 State-funded retirement systems. Provides that the
proceeds of pension obligation bonds may not be used to fund the State's
normal cost, to reduce or replace any minimum contribution otherwise
required, or to pay benefits attributable to service rendered after the
date of deposit of the proceeds. Provides that, for State fiscal years 2027
through 2031, the Governor is authorized to direct the payment of
supplemental State contributions to the 5 State-funded retirement systems
for the purpose of further front-loading payments and reducing unfunded
liabilities. Provides that, for State fiscal years 2032 through 2045, the
minimum contribution to each State-funded retirement system to be made by
the State for each fiscal year shall be the re-amortized minimum
contribution, which shall be calculated as a level-dollar amount over the
years remaining to and including State fiscal year 2045 and shall be
sufficient, in combination with employee contributions, investment income,
and other income, to bring the total assets of each State-funded
retirement system to at least 90% of its total actuarial liabilities by the
end of State fiscal year 2045. Makes conforming changes. Amends the State
Pension Funds Continuing Appropriation Act to make conforming changes.
Effective immediately.
LRB104 20971 RPS 34827 b

A BILL FOR

SB4166
LRB104 20971 RPS 34827 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 1.
This Act may be referred to as the Pension
5
Security and Cost Efficiency Act.

6

Section 5.
Findings.
The General Assembly finds that:
7

(1) The State of Illinois maintains retirement systems
8

for public employees that provide constitutionally
9

protected benefits, support the recruitment and retention
10

of a qualified public workforce, and ensure financial
11

security for retired public servants.
12

(2) The State's pension obligations represent
13

long-term liabilities that must be funded in a manner that
14

is actuarially sound, fiscally responsible, and consistent
15

with the State's constitutional and statutory commitments.
16

(3) Under current law, the State's required
17

contributions to its retirement systems are governed by a
18

funding schedule enacted by Public Act 88-593, commonly
19

known as the Pension Ramp, which backloads payments and
20

results in increasing annual contribution requirements
21

through fiscal year 2045.
22

(4) The funding schedule established by Public Act
23

88-593 permitted the State to make contributions below

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1

actuarially determined levels for extended periods of
2

time, resulting in the deferral of required payments, the
3

accrual of additional unfunded liabilities, and the growth
4

of pension debt within the retirement systems.
5

(5) The backloaded structure of the Pension Ramp
6

increases long-term debt service costs by delaying the
7

payment of pension liabilities and foregoing potential
8

investment earnings. This backloaded structure creates
9

undue fiscal pressure over time.
10

(6) Earlier funding of pension obligations, when
11

informed by actuarial analysis and accompanied by
12

appropriate safeguards, can reduce unfunded accrued
13

actuarial liabilities and lower total costs to taxpayers
14

over time.
15

(7) Refinancing a portion of the State's existing
16

pension liabilities through the issuance of pension
17

obligation bonds, and utilizing the net proceeds thereof
18

(after payment of issuance costs) for the sole purpose of
19

prepaying a portion of the outstanding principal balance
20

of unfunded pension liability shall be structured based on
21

an actuarial certification, be designed to increase the
22

Pension Systems' respective funded ratios to reach 90% by
23

fiscal year 2045, and mitigate long-term contribution
24

volatility.
25

(8) Pension obligation bonds, when issued in a
26

measured and phased-in manner, and when the net proceeds

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LRB104 20971 RPS 34827 b
1

thereof are used solely to reduce the principal balance of
2

unfunded liabilities, can improve the financial health of
3

the Pension Systems by converting unfunded liabilities
4

into invested assets, allowing such assets to earn market
5

returns over time. Historical experience indicates that,
6

over long investment periods, the investment of pension
7

obligation bond proceeds after said proceeds have become
8

assets of the Pension Systems, have generated returns in
9

excess of the cost of the pension obligation bonds,
10

producing a positive compounding effect through the
11

remaining amortization period. Moreover, issuing smaller
12

pension obligation bonds over multiple fiscal years,
13

rather than issuing one, high dollar amount of pension
14

obligation bonds in a single year, mitigates market timing
15

risks and reduces near-term contribution pressures,
16

thereby lessening the need for abrupt revenue increases to
17

address rising pension costs.
18

(9) Credit rating agencies evaluate a state's pension
19

funding practices, unfunded liability management
20

strategies, pension contribution predictability, and
21

long-term liability trends when assessing that state's
22

creditworthiness, and policies that promote stability,
23

predictability, and sustainability in covering unfunded
24

pension liability costs can support improved fiscal
25

outlooks, result in credit upgrades, and thereby lower a
26

state's borrowing costs.

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LRB104 20971 RPS 34827 b
1

(10) Timing the State's pension contributions to be
2

made in full on the first day of the fiscal year, and
3

re-amortizing unfunded liabilities on a level-dollar
4

basis, can enhance budget predictability, save debt
5

service costs, reduce fiscal strain in future years, and
6

strengthen the financial position of the retirement
7

systems.
8

(11) Actuarial analyses and long-term projections
9

indicate that the combined implementation of the
10

strategies set forth in this Act, including the
11

refinancing of a portion of existing pension liabilities
12

through the issuance of pension obligation bonds, using
13

all the net pension obligation bond proceeds (after costs
14

of issuance are covered) to retire existing unfunded
15

pension liability principal, front-loading the State's
16

contributions into its Pension Systems, and re-amortizing
17

the unfunded accrued actuarial liabilities on a
18

level-dollar basis, is expected to reduce total
19

pension-related costs to the State by approximately
20

$40,000,000,000 over the remaining amortization period, as
21

compared to costs that would otherwise be incurred under
22

the existing Pension Ramp.

23

Section 10.
Purpose.
The purpose of this Act is to
24
establish a revised, integrated framework for financing and
25
funding the State's pension obligations to the General

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LRB104 20971 RPS 34827 b
1
Assembly Retirement System, the State Employees' Retirement
2
System, the State Universities Retirement System, the
3
Teachers' Retirement System, and the Judges' Retirement
4
System, in order to:
5

(1) reduce unfunded accrued actuarial liabilities and
6

long-term taxpayer costs by refinancing a portion of
7

existing pension liabilities and accelerating the funding
8

of pension obligations;
9

(2) front-load State contributions and adjust the
10

timing of required contributions to increase investment
11

earnings and improve funded ratios over time;
12

(3) replace the backloaded contribution schedule
13

previously established under Public Act 88-593 with a
14

level-dollar amortization structure beginning in State
15

fiscal year 2032 to promote fiscal stability and
16

predictability; and
17

(4) improve the State's long-term fiscal position and
18

credit profile through enhanced pension funding
19

discipline, actuarial oversight, and sustainable liability
20

management.

21

Section 15.
The Illinois Pension Code is amended by
22
changing Sections 2-124, 2-134, 14-131, 15-155, 16-158,
23
18-131, and 18-140 and by adding Section 1A-202 as follows:

24

(40 ILCS 5/1A-202 new)

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LRB104 20971 RPS 34827 b
1

Sec. 1A-202.
State contributions; pension liability
2
refinancing and re-amortization.
3

(a) Definitions. In this Section:
4

"Actuarially required contributions" means the amount of
5
employer contribution for a given fiscal year that is
6
determined by each Pension System's actuary to be sufficient
7
to both fund the normal cost of benefits earned during that
8
fiscal year in question and to amortize unfunded accrued
9
actuarial liabilities over the applicable amortization period.
10

"Amortization period" means the period of time over which
11
unfunded accrued actuarial liabilities are scheduled to be
12
repaid through actuarially determined contributions, measured
13
from the beginning of the applicable fiscal year to the end of
14
the final fiscal year of the applicable amortization schedule.
15

"Funded ratio" means the ratio, expressed as a percentage,
16
of the actuarial value of a Pension System's assets to its
17
actuarial accrued liabilities, as determined in the most
18
recent actuarial valuation prepared for the applicable Pension
19
System, which shall be calculated by dividing the current
20
monetary value of the applicable Pension System's total assets
21
by its total liabilities.
22

"Pension ramp" means the pension funding schedule
23
established by Public Act 88-593 and codified and amended
24
under various provisions of the Illinois Pension Code.
25

"Pension System" means the General Assembly Retirement
26
System, the State Employees' Retirement System, the State

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LRB104 20971 RPS 34827 b
1
Universities Retirement System, the Teachers' Retirement
2
System, or the Judges' Retirement System.
3

"Principal" means the portion of an outstanding pension
4
obligation or other indebtedness representing the original
5
amount of unfunded liabilities, exclusive of interest,
6
discount, premium, or debt service costs, as determined in
7
accordance with the most recent actuarial valuation.
8

"Re-amortized minimum contribution" means the minimum
9
annual State contribution determined under subsection (i).
10

"State Actuary" means the actuary employed or retained by
11
the State to prepare actuarial valuations, projections, and
12
certifications for the Pension Systems.
13

"Unfunded liability" means the excess of the actuarial
14
accrued liability of the applicable Pension System over the
15
actuarial value of its assets, as determined in the most
16
recent actuarial valuation.
17

(b) General funding objective. The State shall make
18
contributions to the Pension Systems by appropriations of
19
amounts that, together with employee contributions, investment
20
income, and other income, are sufficient to bring each of the
21
Pension Systems to a funded ratio of at least 90% by the end of
22
State fiscal year 2045, in accordance with actuarial
23
recommendations and the requirements of this Section.
24

(c) Timing of State contributions. Beginning in State
25
fiscal year 2027 and continuing through State fiscal year
26
2045, the State shall make the required State contribution to

SB4166
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LRB104 20971 RPS 34827 b
1
each Pension System for each fiscal year on the first day of
2
that fiscal year. The required contribution shall not be
3
deferred, except as may be required by law or limitations on
4
appropriations.
5

(d) Authorization to issue pension obligation bonds.
6

(1) For State fiscal years 2027 through 2031, the
7

State is authorized to issue pension obligation bonds for
8

the sole purpose of reducing the principal balance of
9

unfunded liabilities of the Pension Systems. All net
10

proceeds of each pension obligation bond issued under this
11

Act that remain after covering the cost of the issuance
12

thereof, shall be used to retire principal of unfunded
13

liabilities of the Pension Systems.
14

(2) The aggregate principal amount of pension
15

obligation bonds issued under this subsection shall not
16

exceed $6,000,000,000.
17

(3) Pension obligation bonds issued under this
18

subsection shall, to the extent practicable and consistent
19

with the certification required under subsection (f), be
20

issued in a front-loaded manner over the authorization
21

period, with a greater proportion of the aggregate
22

principal amount issued in earlier fiscal years and a
23

lesser proportion issued in later fiscal years, with
24

issuance of the largest portion in State fiscal year 2027
25

and the smallest portion in State fiscal year 2031.
26

(4) Pension obligation bonds issued under this

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LRB104 20971 RPS 34827 b
1

subsection shall constitute general obligations of the
2

State within the meaning of Section 9 of Article IX of the
3

Illinois Constitution, and the full faith and credit of
4

the State are irrevocably pledged for the payment of
5

principal and interest on such bonds.
6

(5) Debt service on pension obligation bonds issued
7

under this subsection shall be payable from the General
8

Revenue Fund, subject to appropriation.
9

(e) Use of proceeds; restrictions.
10

(1) All proceeds derived from the sale of pension
11

obligation bonds issued under this Act, net of issuance
12

costs, shall be deposited into the applicable Pension
13

Systems and applied exclusively to reduce a portion of the
14

principal amount of unfunded liabilities of those Pension
15

Systems.
16

(2) Proceeds of pension obligation bonds may not be
17

used to fund the State's normal cost, to satisfy or
18

replace any minimum contribution otherwise required under
19

this Code, or to pay benefits attributable to service
20

rendered after the date of deposit of such proceeds.
21

(3) Contributions made with pension obligation bond
22

proceeds under this subsection shall be treated as
23

supplemental contribution for actuarial and accounting
24

purposes, and shall not reduce any statutorily required
25

contribution for the applicable fiscal year.
26

(f) Actuarial certification and conditions precedent.

SB4166
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LRB104 20971 RPS 34827 b
1

(1) Pension obligation bonds may be issued under this
2

Section only upon a written certification by the State
3

Actuary that the issuance of such bonds, together with the
4

proposed application of bond proceeds, is reasonably
5

expected to reduce the unfunded liabilities of the Pension
6

Systems and improve the projected funded ratios over the
7

remaining amortization period.
8

(2) In preparing the certification required under this
9

subsection, the State Actuary shall evaluate projected
10

investment returns, assumed rates of return, debt service
11

requirements, contribution schedules, funded ratios, and
12

any reasonably foreseeable or then extant adverse economic
13

scenario.
14

(g) Supplemental front-loaded contributions.
15

(1) For State fiscal years 2027 through 2031, in
16

addition to any contributions otherwise required under
17

this Code, the Governor is authorized to direct the
18

payment of supplemental State contributions to the Pension
19

Systems for the purpose of further front-loading payments
20

and reducing unfunded liabilities.
21

(2) Any supplemental contribution under this
22

subsection shall require certification by the State
23

Actuary under subsection (f) and shall be applied
24

exclusively to reduce unfunded liabilities.
25

(3) Supplemental contributions made under this
26

subsection may not be used to offset, reduce, or replace

SB4166
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LRB104 20971 RPS 34827 b
1

any required State contribution for the applicable fiscal
2

year.
3

(h) Allocation of additional contributions. Amounts
4
contributed under subsections (d) through (g) shall be
5
allocated among the Pension Systems in proportion to each
6
Pension System's share of the State's total unfunded
7
liability, as determined by the most recent actuarial
8
valuation, unless otherwise provided by law.
9

(i) Re-amortized minimum contribution. For State fiscal
10
years 2032 through 2045, the minimum contribution to each
11
Pension System to be made by the State for each fiscal year
12
shall be the re-amortized minimum contribution. The
13
re-amortized minimum contribution shall be calculated as a
14
level-dollar amount over the years remaining to and including
15
State fiscal year 2045, and shall be sufficient, in
16
combination with employee contributions, investment income,
17
and other income, to bring the total assets of each Pension
18
System to at least 90% of its total actuarial liabilities by
19
the end of State fiscal year 2045. The re-amortized minimum
20
contribution identified in this subsection (i) shall replace
21
the minimum contribution that would otherwise have been
22
required under the pension ramp for State fiscal years 2032
23
through 2045.
24

(j) Construction; controlling provision. This Section
25
shall be construed to supplement and, to the extent of any
26
conflict, supersede the provisions of this Code implementing

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LRB104 20971 RPS 34827 b
1
the Pension Ramp. Nothing in this Section shall be construed
2
to reduce or impair any pension benefit protected under the
3
Illinois Constitution.

4

(40 ILCS 5/2-124)

(from Ch. 108 1/2, par. 2-124)
5

Sec. 2-124.
Contributions by State.
6

(a) The State shall make contributions to the System by
7
appropriations of amounts which, together with the
8
contributions of participants, interest earned on investments,
9
and other income will meet the cost of maintaining and
10
administering the System on a 90% funded basis in accordance
11
with actuarial recommendations.
12

(b) The Board shall determine the amount of State
13
contributions required for each fiscal year on the basis of
14
the actuarial tables and other assumptions adopted by the
15
Board and the prescribed rate of interest, using the formula
16
in subsection (c)
or Section 1A-202, whichever is applicable
.
17

(c) For State fiscal years 2012 through
2031

2045
, the
18
minimum contribution to the System to be made by the State for
19
each fiscal year shall be an amount determined by the System to
20
be sufficient to bring the total assets of the System
, not
21
including proceeds derived from the sale of pension obligation
22
bonds,
up to 90% of the total actuarial liabilities of the
23
System by the end of State fiscal year 2045. In making these
24
determinations, the required State contribution shall be
25
calculated each year as a level percentage of payroll over the

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LRB104 20971 RPS 34827 b
1
years remaining to and including fiscal year 2045 and shall be
2
determined under the projected unit credit actuarial cost
3
method.
Proceeds derived from the sale of pension obligation
4
bonds issued under Section 1A-202 may not be used to satisfy or
5
replace any minimum contribution required under this Section
6
or this Code.

7

For State fiscal years 2032 through 2045, the minimum
8
contribution to the System shall be the amount determined
9
under Section 1A-202.

10

A change in an actuarial or investment assumption that
11
increases or decreases the required State contribution and
12
first applies in State fiscal year 2018 or thereafter shall be
13
implemented in equal annual amounts over a 5-year period
14
beginning in the State fiscal year in which the actuarial
15
change first applies to the required State contribution.
16

A change in an actuarial or investment assumption that
17
increases or decreases the required State contribution and
18
first applied to the State contribution in fiscal year 2014,
19
2015, 2016, or 2017 shall be implemented:
20

(i) as already applied in State fiscal years before
21

2018; and
22

(ii) in the portion of the 5-year period beginning in
23

the State fiscal year in which the actuarial change first
24

applied that occurs in State fiscal year 2018 or
25

thereafter, by calculating the change in equal annual
26

amounts over that 5-year period and then implementing it

SB4166
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LRB104 20971 RPS 34827 b
1

at the resulting annual rate in each of the remaining
2

fiscal years in that 5-year period.
3

For State fiscal years 1996 through 2005, the State
4
contribution to the System, as a percentage of the applicable
5
employee payroll, shall be increased in equal annual
6
increments so that by State fiscal year 2011, the State is
7
contributing at the rate required under this Section.
8

Notwithstanding any other provision of this Article, the
9
total required State contribution for State fiscal year 2006
10
is $4,157,000.
11

Notwithstanding any other provision of this Article, the
12
total required State contribution for State fiscal year 2007
13
is $5,220,300.
14

For each of State fiscal years 2008 through 2009, the
15
State contribution to the System, as a percentage of the
16
applicable employee payroll, shall be increased in equal
17
annual increments from the required State contribution for
18
State fiscal year 2007, so that by State fiscal year 2011, the
19
State is contributing at the rate otherwise required under
20
this Section.
21

Notwithstanding any other provision of this Article, the
22
total required State contribution for State fiscal year 2010
23
is $10,454,000 and shall be made from the proceeds of bonds
24
sold in fiscal year 2010 pursuant to Section 7.2 of the General
25
Obligation Bond Act, less (i) the pro rata share of bond sale
26
expenses determined by the System's share of total bond

SB4166
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LRB104 20971 RPS 34827 b
1
proceeds, (ii) any amounts received from the General Revenue
2
Fund in fiscal year 2010, and (iii) any reduction in bond
3
proceeds due to the issuance of discounted bonds, if
4
applicable.
5

Notwithstanding any other provision of this Article, the
6
total required State contribution for State fiscal year 2011
7
is the amount recertified by the System on or before April 1,
8
2011 pursuant to Section 2-134 and shall be made from the
9
proceeds of bonds sold in fiscal year 2011 pursuant to Section
10
7.2 of the General Obligation Bond Act, less (i) the pro rata
11
share of bond sale expenses determined by the System's share
12
of total bond proceeds, (ii) any amounts received from the
13
General Revenue Fund in fiscal year 2011, and (iii) any
14
reduction in bond proceeds due to the issuance of discounted
15
bonds, if applicable.
16

Beginning in State fiscal year 2046, the minimum State
17
contribution for each fiscal year shall be the amount needed
18
to maintain the total assets of the System at 90% of the total
19
actuarial 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

SB4166
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LRB104 20971 RPS 34827 b
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 Section
10
2-134, 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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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

(d) For purposes of determining the required State
6
contribution to the System, the value of the System's assets
7
shall be equal to the actuarial value of the System's assets,
8
which shall be calculated as follows:
9

As of June 30, 2008, the actuarial value of the System's
10
assets shall be equal to the market value of the assets as of
11
that date. In determining the actuarial value of the System's
12
assets for fiscal years after June 30, 2008, any actuarial
13
gains or losses from investment return incurred in a fiscal
14
year shall be recognized in equal annual amounts over the
15
5-year period following that fiscal year.
16

(e) For purposes of determining the required State
17
contribution to the system for a particular year, the
18
actuarial value of assets shall be assumed to earn a rate of
19
return equal to the system's actuarially assumed rate of
20
return.
21
(Source: P.A. 100-23, eff. 7-6-17.)

22

(40 ILCS 5/2-134)

(from Ch. 108 1/2, par. 2-134)
23

Sec. 2-134.
To certify required State contributions and
24
submit vouchers.
25

(a) The Board shall certify to the Governor on or before

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December 15 of each year until December 15, 2011 the amount of
2
the required State contribution to the System for the next
3
fiscal year and shall specifically identify the System's
4
projected State normal cost for that fiscal year. The
5
certification shall include a copy of the actuarial
6
recommendations upon which it is based and shall specifically
7
identify the System's projected State normal cost for that
8
fiscal year.
9

On or before November 1 of each year, beginning November
10
1, 2012, the Board shall submit to the State Actuary, the
11
Governor, and the General Assembly a proposed certification of
12
the amount of the required State contribution to the System
13
for the next fiscal year, along with all of the actuarial
14
assumptions, calculations, and data upon which that proposed
15
certification is based. On or before January 1 of each year
16
beginning January 1, 2013, the State Actuary shall issue a
17
preliminary report concerning the proposed certification and
18
identifying, if necessary, recommended changes in actuarial
19
assumptions that the Board must consider before finalizing its
20
certification of the required State contributions. On or
21
before January 15, 2013 and every January 15 thereafter, the
22
Board shall certify to the Governor and the General Assembly
23
the amount of the required State contribution for the next
24
fiscal year. The Board's certification must note any
25
deviations from the State Actuary's recommended changes, the
26
reason or reasons for not following the State Actuary's

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recommended changes, and the fiscal impact of not following
2
the State Actuary's recommended changes on the required State
3
contribution.
4

On or before May 1, 2004, the Board shall recalculate and
5
recertify to the Governor the amount of the required State
6
contribution to the System for State fiscal year 2005, taking
7
into account the amounts appropriated to and received by the
8
System under subsection (d) of Section 7.2 of the General
9
Obligation Bond Act.
10

On or before July 1, 2005, the Board shall recalculate and
11
recertify to the Governor the amount of the required State
12
contribution to the System for State fiscal year 2006, taking
13
into account the changes in required State contributions made
14
by this amendatory Act of the 94th General Assembly.
15

On or before April 1, 2011, the Board shall recalculate
16
and recertify to the Governor the amount of the required State
17
contribution to the System for State fiscal year 2011,
18
applying the changes made by Public Act 96-889 to the System's
19
assets and liabilities as of June 30, 2009 as though Public Act
20
96-889 was approved on that date.
21

By November 1, 2017, the Board shall recalculate and
22
recertify to the State Actuary, the Governor, and the General
23
Assembly the amount of the State contribution to the System
24
for State fiscal year 2018, taking into account the changes in
25
required State contributions made by this amendatory Act of
26
the 100th General Assembly. The State Actuary shall review the

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assumptions and valuations underlying the Board's revised
2
certification and issue a preliminary report concerning the
3
proposed recertification and identifying, if necessary,
4
recommended changes in actuarial assumptions that the Board
5
must consider before finalizing its certification of the
6
required State contributions. The Board's final certification
7
must note any deviations from the State Actuary's recommended
8
changes, the reason or reasons for not following the State
9
Actuary's recommended changes, and the fiscal impact of not
10
following the State Actuary's recommended changes on the
11
required State contribution.
12

(b) Unless otherwise directed by the Comptroller under
13
subsection (b-1)
or as otherwise provided in this subsection
,
14
the Board shall submit vouchers for payment of State
15
contributions to the System for the applicable month on the
16
15th day of each month, or as soon thereafter as may be
17
practicable. The amount vouchered for a monthly payment shall
18
total one-twelfth of the required annual State contribution
19
certified under subsection (a).
Beginning State fiscal year
20
2027 and through State fiscal year 2045, on the first day of
21
each State fiscal year, the Board shall submit a voucher for
22
the payment of the State contribution for that State fiscal
23
year, as certified by the Board, whichever is applicable.

24

(b-1)
Until State fiscal year 2027 and for State fiscal
25
year 2046 and thereafter

Beginning in State fiscal year 2025
,
26
if the Comptroller requests that the Board submit, during a

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State fiscal year, vouchers for multiple monthly payments for
2
advance payment of State contributions due to the System for
3
that State fiscal year, then the Board shall submit those
4
additional monthly vouchers as directed by the Comptroller,
5
notwithstanding subsection (b). Unless an act of
6
appropriations provides otherwise, nothing in this Section
7
authorizes the Board to submit, in a State fiscal year,
8
vouchers for the payment of State contributions to the System
9
in an amount that exceeds the rate of payroll that is certified
10
by the System under this Section for that State fiscal year.
11

(b-2) The vouchers described in subsections (b) and (b-1)
12
shall be paid by the State Comptroller and Treasurer by
13
warrants drawn on the funds appropriated to the System for
14
that fiscal year.
15

If in any month the amount remaining unexpended from all
16
other appropriations to the System for the applicable fiscal
17
year (including the appropriations to the System under Section
18
8.12 of the State Finance Act and Section 1 of the State
19
Pension Funds Continuing Appropriation Act) is less than the
20
amount lawfully vouchered under this Section, the difference
21
shall be paid from the General Revenue Fund under the
22
continuing appropriation authority provided in Section 1.1 of
23
the State Pension Funds Continuing Appropriation Act.
24

(c) The full amount of any annual appropriation for the
25
System for State fiscal year 1995 shall be transferred and
26
made available to the System at the beginning of that fiscal

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year at the request of the Board. Any excess funds remaining at
2
the end of any fiscal year from appropriations shall be
3
retained by the System as a general reserve to meet the
4
System's accrued liabilities.
5
(Source: P.A. 103-588, eff. 6-5-24.)

6

(40 ILCS 5/14-131)
7

Sec. 14-131.
Contributions by State.
8

(a) The State shall make contributions to the System by
9
appropriations of amounts which, together with other employer
10
contributions from trust, federal, and other funds, employee
11
contributions, investment income, and other income, will be
12
sufficient to meet the cost of maintaining and administering
13
the System on a 90% funded basis in accordance with actuarial
14
recommendations.
15

For the purposes of this Section and Section 14-135.08,
16
references to State contributions refer only to employer
17
contributions and do not include employee contributions that
18
are picked up or otherwise paid by the State or a department on
19
behalf of the employee.
20

(b) The Board shall determine the total amount of State
21
contributions required for each fiscal year on the basis of
22
the actuarial tables and other assumptions adopted by the
23
Board, using the formula in subsection (e)
or Section 1A-202,
24
whichever is applicable
.
25

The Board shall also determine a State contribution rate

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for each fiscal year, expressed as a percentage of payroll,
2
based on the total required State contribution for that fiscal
3
year (less the amount received by the System from
4
appropriations under Section 8.12 of the State Finance Act and
5
Section 1 of the State Pension Funds Continuing Appropriation
6
Act, if any, for the fiscal year ending on the June 30
7
immediately preceding the applicable November 15 certification
8
deadline), the estimated payroll (including all forms of
9
compensation) for personal services rendered by eligible
10
employees, and the recommendations of the actuary.
11

For the purposes of this Section and Section 14.1 of the
12
State Finance Act, the term "eligible employees" includes
13
employees who participate in the System, persons who may elect
14
to participate in the System but have not so elected, persons
15
who are serving a qualifying period that is required for
16
participation, and annuitants employed by a department as
17
described in subdivision (a)(1) or (a)(2) of Section 14-111.
18

(c) Contributions shall be made by the several departments
19
for each pay period by warrants drawn by the State Comptroller
20
against their respective funds or appropriations based upon
21
vouchers stating the amount to be so contributed. These
22
amounts shall be based on the full rate certified by the Board
23
under Section 14-135.08 for that fiscal year. From March 5,
24
2004 (the effective date of Public Act 93-665) through the
25
payment of the final payroll from fiscal year 2004
26
appropriations, the several departments shall not make

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contributions for the remainder of fiscal year 2004 but shall
2
instead make payments as required under subsection (a-1) of
3
Section 14.1 of the State Finance Act. The several departments
4
shall resume those contributions at the commencement of fiscal
5
year 2005.
6

(c-1) Notwithstanding subsection (c) of this Section, for
7
fiscal years 2010, 2012, and each fiscal year thereafter,
8
contributions by the several departments are not required to
9
be made for General Revenue Funds payrolls processed by the
10
Comptroller. Payrolls paid by the several departments from all
11
other State funds must continue to be processed pursuant to
12
subsection (c) of this Section.
13

(c-2) Unless otherwise directed by the Comptroller under
14
subsection (c-3)
or as otherwise provided in this subsection
,
15
the Board shall submit vouchers for payment of State
16
contributions to the System for the applicable month on the
17
15th day of each month, or as soon thereafter as may be
18
practicable. The amount vouchered for a monthly payment shall
19
total one-twelfth of the fiscal year General Revenue Fund
20
contribution as certified by the System pursuant to Section
21
14-135.08 of this Code.
Beginning State fiscal year 2027 and
22
through State fiscal year 2045, on the first day of each State
23
fiscal year, the Board shall submit a voucher for the payment
24
of the State contribution for that State fiscal year, as
25
certified by the Board, whichever is applicable.

26

(c-3)
Until State fiscal year 2027 and for State fiscal

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year 2046 and thereafter

Beginning in State fiscal year 2025
,
2
if the Comptroller requests that the Board submit, during a
3
State fiscal year, vouchers for multiple monthly payments for
4
advance payment of State contributions due to the System for
5
that State fiscal year, then the Board shall submit those
6
additional vouchers as directed by the Comptroller,
7
notwithstanding subsection (c-2). Unless an act of
8
appropriations provides otherwise, nothing in this Section
9
authorizes the Board to submit, in a State fiscal year,
10
vouchers for the payment of State contributions to the System
11
in an amount that exceeds the rate of payroll that is certified
12
by the System under Section 14-135.08 for that State fiscal
13
year.
14

(d) If an employee is paid from trust funds or federal
15
funds, the department or other employer shall pay employer
16
contributions from those funds to the System at the certified
17
rate, unless the terms of the trust or the federal-State
18
agreement preclude the use of the funds for that purpose, in
19
which case the required employer contributions shall be paid
20
by the State.
21

(e) For State fiscal years 2012 through
2031

2045
, the
22
minimum contribution to the System to be made by the State for
23
each fiscal year shall be an amount determined by the System to
24
be sufficient to bring the total assets of the System up to
25
90%
, not including proceeds derived from the sale of pension
26
obligation bonds,
of the total actuarial liabilities of the

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System by the end of State fiscal year 2045. In making these
2
determinations, the required State contribution shall be
3
calculated each year as a level percentage of payroll over the
4
years remaining to and including fiscal year 2045 and shall be
5
determined under the projected unit credit actuarial cost
6
method.
Proceeds derived from the sale of pension obligation
7
bonds issued under Section 1A-202 may not be used to satisfy or
8
replace any minimum contribution required under this Section
9
or this Code.

10

For State fiscal years 2032 through 2045, the minimum
11
contribution to the System shall be the amount determined
12
under Section 1A-202.

13

A change in an actuarial or investment assumption that
14
increases or decreases the required State contribution and
15
first applies in State fiscal year 2018 or thereafter shall be
16
implemented in equal annual amounts over a 5-year period
17
beginning in the State fiscal year in which the actuarial
18
change first applies to the required State contribution.
19

A change in an actuarial or investment assumption that
20
increases or decreases the required State contribution and
21
first applied to the State contribution in fiscal year 2014,
22
2015, 2016, or 2017 shall be implemented:
23

(i) as already applied in State fiscal years before
24

2018; and
25

(ii) in the portion of the 5-year period beginning in
26

the State fiscal year in which the actuarial change first

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1

applied that occurs in State fiscal year 2018 or
2

thereafter, by calculating the change in equal annual
3

amounts over that 5-year period and then implementing it
4

at the resulting annual rate in each of the remaining
5

fiscal years in that 5-year period.
6

For State fiscal years 1996 through 2005, the State
7
contribution to the System, as a percentage of the applicable
8
employee payroll, shall be increased in equal annual
9
increments so that by State fiscal year 2011, the State is
10
contributing at the rate required under this Section; except
11
that (i) for State fiscal year 1998, for all purposes of this
12
Code and any other law of this State, the certified percentage
13
of the applicable employee payroll shall be 5.052% for
14
employees earning eligible creditable service under Section
15
14-110 and 6.500% for all other employees, notwithstanding any
16
contrary certification made under Section 14-135.08 before
17
July 7, 1997 (the effective date of Public Act 90-65), and (ii)
18
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): 9.8% in FY 1999; 10.0% in
24
FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
25
and 10.8% in FY 2004.
26

Beginning in State fiscal year 2046, the minimum State

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1
contribution for each fiscal year shall be the amount needed
2
to maintain the total assets of the System at 90% of the total
3
actuarial liabilities of the System.
4

Amounts received by the System pursuant to Section 25 of
5
the Budget Stabilization Act or Section 8.12 of the State
6
Finance Act in any fiscal year do not reduce and do not
7
constitute payment of any portion of the minimum State
8
contribution required under this Article in that fiscal year.
9
Such amounts shall not reduce, and shall not be included in the
10
calculation of, the required State contributions under this
11
Article in any future year until the System has reached a
12
funding ratio of at least 90%. A reference in this Article to
13
the "required State contribution" or any substantially similar
14
term does not include or apply to any amounts payable to the
15
System under Section 25 of the Budget Stabilization Act.
16

Notwithstanding any other provision of this Section, the
17
required State contribution for State fiscal year 2005 and for
18
fiscal year 2008 and each fiscal year thereafter, as
19
calculated under this Section and certified under Section
20
14-135.08, shall not exceed an amount equal to (i) the amount
21
of the required State contribution that would have been
22
calculated under this Section for that fiscal year if the
23
System had not received any payments under subsection (d) of
24
Section 7.2 of the General Obligation Bond Act, minus (ii) the
25
portion of the State's total debt service payments for that
26
fiscal year on the bonds issued in fiscal year 2003 for the

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1
purposes of that Section 7.2, as determined and certified by
2
the Comptroller, that is the same as the System's portion of
3
the total moneys distributed under subsection (d) of Section
4
7.2 of the General Obligation Bond Act.
5

(f) (Blank).
6

(g) For purposes of determining the required State
7
contribution to the System, the value of the System's assets
8
shall be equal to the actuarial value of the System's assets,
9
which shall be calculated as follows:
10

As of June 30, 2008, the actuarial value of the System's
11
assets shall be equal to the market value of the assets as of
12
that date. In determining the actuarial value of the System's
13
assets for fiscal years after June 30, 2008, any actuarial
14
gains or losses from investment return incurred in a fiscal
15
year shall be recognized in equal annual amounts over the
16
5-year period following that fiscal year.
17

(h) For purposes of determining the required State
18
contribution to the System for a particular year, the
19
actuarial value of assets shall be assumed to earn a rate of
20
return equal to the System's actuarially assumed rate of
21
return.
22

(i) (Blank).
23

(j) (Blank).
24

(k) For fiscal year 2012 and each fiscal year thereafter,
25
after the submission of all payments for eligible employees
26
from personal services line items paid from the General

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1
Revenue Fund in the fiscal year have been made, the
2
Comptroller shall provide to the System a certification of the
3
sum of all expenditures in the fiscal year for personal
4
services. Upon receipt of the certification, the System shall
5
determine the amount due to the System based on the full rate
6
certified by the Board under Section 14-135.08 for the fiscal
7
year in order to meet the State's obligation under this
8
Section. The System shall compare this amount due to the
9
amount received by the System for the fiscal year. If the
10
amount due is more than the amount received, the difference
11
shall be termed the "Prior Fiscal Year Shortfall" for purposes
12
of this Section, and the Prior Fiscal Year Shortfall shall be
13
satisfied under Section 1.2 of the State Pension Funds
14
Continuing Appropriation Act. If the amount due is less than
15
the amount received, the difference shall be termed the "Prior
16
Fiscal Year Overpayment" for purposes of this Section, and the
17
Prior Fiscal Year Overpayment shall be repaid by the System to
18
the General Revenue Fund as soon as practicable after the
19
certification.
20
(Source: P.A. 103-588, eff. 6-5-24.)

21

(40 ILCS 5/15-155)

(from Ch. 108 1/2, par. 15-155)
22

Sec. 15-155.
Employer contributions.
23

(a) The State of Illinois shall make contributions by
24
appropriations of amounts which, together with the other
25
employer contributions from trust, federal, and other funds,

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employee contributions, income from investments, and other
2
income of this System, will be sufficient to meet the cost of
3
maintaining and administering the System on a 90% funded basis
4
in accordance with actuarial recommendations.
5

The Board shall determine the amount of State
6
contributions required for each fiscal year on the basis of
7
the actuarial tables and other assumptions adopted by the
8
Board and the recommendations of the actuary, using the
9
formula in subsection (a-1)
or Section 1A-202, whichever is
10
applicable
.
11

(a-1) For State fiscal years 2012 through
2031

2045
, the
12
minimum contribution to the System to be made by the State for
13
each fiscal year shall be an amount determined by the System to
14
be sufficient to bring the total assets of the System
, not
15
including proceeds derived from the sale of pension obligation
16
bonds,
up to 90% of the total actuarial liabilities of the
17
System by the end of State fiscal year 2045. In making these
18
determinations, the required State contribution shall be
19
calculated each year as a level percentage of payroll over the
20
years remaining to and including fiscal year 2045 and shall be
21
determined under the projected unit credit actuarial cost
22
method.
Proceeds derived from the sale of pension obligation
23
bonds issued under Section 1A-202 may not be used to satisfy or
24
replace any minimum contribution required under this Section
25
or this Code.

26

For State fiscal years 2032 through 2045, the minimum

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1
contribution to the System shall be the amount determined
2
under Section 1A-202.

3

For each of State fiscal years 2018, 2019, and 2020, the
4
State shall make an additional contribution to the System
5
equal to 2% of the total payroll of each employee who is deemed
6
to have elected the benefits under Section 1-161 or who has
7
made the election under subsection (c) of Section 1-161.
8

A change in an actuarial or investment assumption that
9
increases or decreases the required State contribution and
10
first applies in State fiscal year 2018 or thereafter shall be
11
implemented in equal annual amounts over a 5-year period
12
beginning in the State fiscal year in which the actuarial
13
change first applies to the required State contribution.
14

A change in an actuarial or investment assumption that
15
increases or decreases the required State contribution and
16
first applied to the State contribution in fiscal year 2014,
17
2015, 2016, or 2017 shall be implemented:
18

(i) as already applied in State fiscal years before
19

2018; and
20

(ii) in the portion of the 5-year period beginning in
21

the State fiscal year in which the actuarial change first
22

applied that occurs in State fiscal year 2018 or
23

thereafter, by calculating the change in equal annual
24

amounts over that 5-year period and then implementing it
25

at the resulting annual rate in each of the remaining
26

fiscal years in that 5-year period.

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1

For State fiscal years 1996 through 2005, the State
2
contribution to the System, as a percentage of the applicable
3
employee payroll, shall be increased in equal annual
4
increments so that by State fiscal year 2011, the State is
5
contributing at the rate required under this Section.
6

Notwithstanding any other provision of this Article, the
7
total required State contribution for State fiscal year 2006
8
is $166,641,900.
9

Notwithstanding any other provision of this Article, the
10
total required State contribution for State fiscal year 2007
11
is $252,064,100.
12

For each of State fiscal years 2008 through 2009, the
13
State contribution to the System, as a percentage of the
14
applicable employee payroll, shall be increased in equal
15
annual increments from the required State contribution for
16
State fiscal year 2007, so that by State fiscal year 2011, the
17
State is contributing at the rate otherwise required under
18
this Section.
19

Notwithstanding any other provision of this Article, the
20
total required State contribution for State fiscal year 2010
21
is $702,514,000 and shall be made from the State Pensions Fund
22
and proceeds of bonds sold in fiscal year 2010 pursuant to
23
Section 7.2 of the General Obligation Bond Act, less (i) the
24
pro rata share of bond sale expenses determined by the
25
System's share of total bond proceeds, (ii) any amounts
26
received from the General Revenue Fund in fiscal year 2010,

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1
(iii) any reduction in bond proceeds due to the issuance of
2
discounted bonds, if applicable.
3

Notwithstanding any other provision of this Article, the
4
total required State contribution for State fiscal year 2011
5
is the amount recertified by the System on or before April 1,
6
2011 pursuant to Section 15-165 and shall be made from the
7
State Pensions Fund and proceeds of bonds sold in fiscal year
8
2011 pursuant to Section 7.2 of the General Obligation Bond
9
Act, less (i) the pro rata share of bond sale expenses
10
determined by the System's share of total bond proceeds, (ii)
11
any amounts received from the General Revenue Fund in fiscal
12
year 2011, and (iii) any reduction in bond proceeds due to the
13
issuance of discounted bonds, if applicable.
14

Beginning in State fiscal year 2046, the minimum State
15
contribution for each fiscal year shall be the amount needed
16
to maintain the total assets of the System at 90% of the total
17
actuarial liabilities of the System.
18

Amounts received by the System pursuant to Section 25 of
19
the Budget Stabilization Act or Section 8.12 of the State
20
Finance Act in any fiscal year do not reduce and do not
21
constitute payment of any portion of the minimum State
22
contribution required under this Article in that fiscal year.
23
Such amounts shall not reduce, and shall not be included in the
24
calculation of, the required State contributions under this
25
Article in any future year until the System has reached a
26
funding ratio of at least 90%. A reference in this Article to

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1
the "required State contribution" or any substantially similar
2
term does not include or apply to any amounts payable to the
3
System under Section 25 of the Budget Stabilization Act.
4

Notwithstanding any other provision of this Section, the
5
required State contribution for State fiscal year 2005 and for
6
fiscal year 2008 and each fiscal year thereafter, as
7
calculated under this Section and certified under Section
8
15-165, shall not exceed an amount equal to (i) the amount of
9
the required State contribution that would have been
10
calculated under this Section for that fiscal year if the
11
System had not received any payments under subsection (d) of
12
Section 7.2 of the General Obligation Bond Act, minus (ii) the
13
portion of the State's total debt service payments for that
14
fiscal year on the bonds issued in fiscal year 2003 for the
15
purposes of that Section 7.2, as determined and certified by
16
the Comptroller, that is the same as the System's portion of
17
the total moneys distributed under subsection (d) of Section
18
7.2 of the General Obligation Bond Act. In determining this
19
maximum for State fiscal years 2008 through 2010, however, the
20
amount referred to in item (i) shall be increased, as a
21
percentage of the applicable employee payroll, in equal
22
increments calculated from the sum of the required State
23
contribution for State fiscal year 2007 plus the applicable
24
portion of the State's total debt service payments for fiscal
25
year 2007 on the bonds issued in fiscal year 2003 for the
26
purposes of Section 7.2 of the General Obligation Bond Act, so

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1
that, by State fiscal year 2011, the State is contributing at
2
the rate otherwise required under this Section.
3

(a-2) Beginning in fiscal year 2018, each employer under
4
this Article shall pay to the System a required contribution
5
determined as a percentage of projected payroll and sufficient
6
to produce an annual amount equal to:
7

(i) for each of fiscal years 2018, 2019, and 2020, the
8

defined benefit normal cost of the defined benefit plan,
9

less the employee contribution, for each employee of that
10

employer who has elected or who is deemed to have elected
11

the benefits under Section 1-161 or who has made the
12

election under subsection (c) of Section 1-161; for fiscal
13

year 2021 and each fiscal year thereafter, the defined
14

benefit normal cost of the defined benefit plan, less the
15

employee contribution, plus 2%, for each employee of that
16

employer who has elected or who is deemed to have elected
17

the benefits under Section 1-161 or who has made the
18

election under subsection (c) of Section 1-161; plus
19

(ii) the amount required for that fiscal year to
20

amortize any unfunded actuarial accrued liability
21

associated with the present value of liabilities
22

attributable to the employer's account under Section
23

15-155.2, determined as a level percentage of payroll over
24

a 30-year rolling amortization period.
25

In determining contributions required under item (i) of
26
this subsection, the System shall determine an aggregate rate

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1
for all employers, expressed as a percentage of projected
2
payroll.
3

In determining the contributions required under item (ii)
4
of this subsection, the amount shall be computed by the System
5
on the basis of the actuarial assumptions and tables used in
6
the most recent actuarial valuation of the System that is
7
available at the time of the computation.
8

The contributions required under this subsection (a-2)
9
shall be paid by an employer concurrently with that employer's
10
payroll payment period. The State, as the actual employer of
11
an employee, shall make the required contributions under this
12
subsection.
13

As used in this subsection, "academic year" means the
14
12-month period beginning September 1.
15

(b) If an employee is paid from trust or federal funds, the
16
employer shall pay to the Board contributions from those funds
17
which are sufficient to cover the accruing normal costs on
18
behalf of the employee. However, universities having employees
19
who are compensated out of local auxiliary funds, income
20
funds, or service enterprise funds are not required to pay
21
such contributions on behalf of those employees. The local
22
auxiliary funds, income funds, and service enterprise funds of
23
universities shall not be considered trust funds for the
24
purpose of this Article, but funds of alumni associations,
25
foundations, and athletic associations which are affiliated
26
with the universities included as employers under this Article

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and other employers which do not receive State appropriations
2
are considered to be trust funds for the purpose of this
3
Article.
4

(b-1) The City of Urbana and the City of Champaign shall
5
each make employer contributions to this System for their
6
respective firefighter employees who participate in this
7
System pursuant to subsection (h) of Section 15-107. The rate
8
of contributions to be made by those municipalities shall be
9
determined annually by the Board on the basis of the actuarial
10
assumptions adopted by the Board and the recommendations of
11
the actuary, and shall be expressed as a percentage of salary
12
for each such employee. The Board shall certify the rate to the
13
affected municipalities as soon as may be practical. The
14
employer contributions required under this subsection shall be
15
remitted by the municipality to the System at the same time and
16
in the same manner as employee contributions.
17

(c) Through State fiscal year 1995: The total employer
18
contribution shall be apportioned among the various funds of
19
the State and other employers, whether trust, federal, or
20
other funds, in accordance with actuarial procedures approved
21
by the Board. State of Illinois contributions for employers
22
receiving State appropriations for personal services shall be
23
payable from appropriations made to the employers or to the
24
System. The contributions for Class I community colleges
25
covering earnings other than those paid from trust and federal
26
funds, shall be payable solely from appropriations to the

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Illinois Community College Board or the System for employer
2
contributions.
3

(d) Beginning in State fiscal year 1996, the required
4
State contributions to the System shall be appropriated
5
directly to the System and shall be payable through vouchers
6
issued in accordance with subsection (c) of Section 15-165,
7
except as provided in subsection (g).
8

(e) The State Comptroller shall draw warrants payable to
9
the System upon proper certification by the System or by the
10
employer in accordance with the appropriation laws and this
11
Code.
12

(f) Normal costs under this Section means liability for
13
pensions and other benefits which accrues to the System
14
because of the credits earned for service rendered by the
15
participants during the fiscal year and expenses of
16
administering the System, but shall not include the principal
17
of or any redemption premium or interest on any bonds issued by
18
the Board or any expenses incurred or deposits required in
19
connection therewith.
20

(g) If the amount of a participant's earnings for any
21
academic year used to determine the final rate of earnings,
22
determined on a full-time equivalent basis, exceeds the amount
23
of his or her earnings with the same employer for the previous
24
academic year, determined on a full-time equivalent basis, by
25
more than 6%, the participant's employer shall pay to the
26
System, in addition to all other payments required under this

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Section and in accordance with guidelines established by the
2
System, the present value of the increase in benefits
3
resulting from the portion of the increase in earnings that is
4
in excess of 6%. This present value shall be computed by the
5
System on the basis of the actuarial assumptions and tables
6
used in the most recent actuarial valuation of the System that
7
is available at the time of the computation. The System may
8
require the employer to provide any pertinent information or
9
documentation.
10

Whenever it determines that a payment is or may be
11
required under this subsection (g), the System shall calculate
12
the amount of the payment and bill the employer for that
13
amount. The bill shall specify the calculations used to
14
determine the amount due. If the employer disputes the amount
15
of the bill, it may, within 30 days after receipt of the bill,
16
apply to the System in writing for a recalculation. The
17
application must specify in detail the grounds of the dispute
18
and, if the employer asserts that the calculation is subject
19
to subsection (h), (h-5), or (i) of this Section, must include
20
an affidavit setting forth and attesting to all facts within
21
the employer's knowledge that are pertinent to the
22
applicability of that subsection. Upon receiving a timely
23
application for recalculation, the System shall review the
24
application and, if appropriate, recalculate the amount due.
25

The employer contributions required under this subsection
26
(g) may be paid in the form of a lump sum within 90 days after

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1
receipt of the bill. If the employer contributions are not
2
paid within 90 days after receipt of the bill, then interest
3
will be charged at a rate equal to the System's annual
4
actuarially assumed rate of return on investment compounded
5
annually from the 91st day after receipt of the bill. Payments
6
must be concluded within 7 years after the employer's receipt
7
of the bill.
8

When assessing payment for any amount due under this
9
subsection (g), the System shall include earnings, to the
10
extent not established by a participant under Section
11
15-113.11 or 15-113.12, that would have been paid to the
12
participant had the participant not taken (i) periods of
13
voluntary or involuntary furlough occurring on or after July
14
1, 2015 and on or before June 30, 2017 or (ii) periods of
15
voluntary pay reduction in lieu of furlough occurring on or
16
after July 1, 2015 and on or before June 30, 2017. Determining
17
earnings that would have been paid to a participant had the
18
participant not taken periods of voluntary or involuntary
19
furlough or periods of voluntary pay reduction shall be the
20
responsibility of the employer, and shall be reported in a
21
manner prescribed by the System.
22

This subsection (g) does not apply to (1) Tier 2 hybrid
23
plan members and (2) Tier 2 defined benefit members who first
24
participate under this Article on or after the implementation
25
date of the Optional Hybrid Plan.
26

(g-1) (Blank).

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1

(h) This subsection (h) applies only to payments made or
2
salary increases given on or after June 1, 2005 but before July
3
1, 2011. The changes made by Public Act 94-1057 shall not
4
require the System to refund any payments received before July
5
31, 2006 (the effective date of Public Act 94-1057).
6

When assessing payment for any amount due under subsection
7
(g), the System shall exclude earnings increases paid to
8
participants under contracts or collective bargaining
9
agreements entered into, amended, or renewed before June 1,
10
2005.
11

When assessing payment for any amount due under subsection
12
(g), the System shall exclude earnings increases paid to a
13
participant at a time when the participant is 10 or more years
14
from retirement eligibility under Section 15-135.
15

When assessing payment for any amount due under subsection
16
(g), the System shall exclude earnings increases resulting
17
from overload work, including a contract for summer teaching,
18
or overtime when the employer has certified to the System, and
19
the System has approved the certification, that: (i) in the
20
case of overloads (A) the overload work is for the sole purpose
21
of academic instruction in excess of the standard number of
22
instruction hours for a full-time employee occurring during
23
the academic year that the overload is paid and (B) the
24
earnings increases are equal to or less than the rate of pay
25
for academic instruction computed using the participant's
26
current salary rate and work schedule; and (ii) in the case of

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overtime, the overtime was necessary for the educational
2
mission.
3

When assessing payment for any amount due under subsection
4
(g), the System shall exclude any earnings increase resulting
5
from (i) a promotion for which the employee moves from one
6
classification to a higher classification under the State
7
Universities Civil Service System, (ii) a promotion in
8
academic rank for a tenured or tenure-track faculty position,
9
or (iii) a promotion that the Illinois Community College Board
10
has recommended in accordance with subsection (k) of this
11
Section. These earnings increases shall be excluded only if
12
the promotion is to a position that has existed and been filled
13
by a member for no less than one complete academic year and the
14
earnings increase as a result of the promotion is an increase
15
that results in an amount no greater than the average salary
16
paid for other similar positions.
17

(h-5) When assessing payment for any amount due under
18
subsection (g), the System shall exclude any earnings increase
19
paid in an academic year beginning on or after July 1, 2020
20
resulting from overload work performed in an academic year
21
subsequent to an academic year in which the employer was
22
unable to offer or allow to be conducted overload work due to
23
an emergency declaration limiting such activities.
24

(i) When assessing payment for any amount due under
25
subsection (g), the System shall exclude any salary increase
26
described in subsection (h) of this Section given on or after

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July 1, 2011 but before July 1, 2014 under a contract or
2
collective bargaining agreement entered into, amended, or
3
renewed on or after June 1, 2005 but before July 1, 2011.
4
Except as provided in subsection (h-5), any payments made or
5
salary increases given after June 30, 2014 shall be used in
6
assessing payment for any amount due under subsection (g) of
7
this Section.
8

(j) The System shall prepare a report and file copies of
9
the report with the Governor and the General Assembly by
10
January 1, 2007 that contains all of the following
11
information:
12

(1) The number of recalculations required by the
13

changes made to this Section by Public Act 94-1057 for
14

each employer.
15

(2) The dollar amount by which each employer's
16

contribution to the System was changed due to
17

recalculations required by Public Act 94-1057.
18

(3) The total amount the System received from each
19

employer as a result of the changes made to this Section by
20

Public Act 94-4.
21

(4) The increase in the required State contribution
22

resulting from the changes made to this Section by Public
23

Act 94-1057.
24

(j-5) For State fiscal years beginning on or after July 1,
25
2017, if the amount of a participant's earnings for any State
26
fiscal year exceeds the amount of the salary set by law for the

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

Whenever it determines that a payment is or may be
16
required under this subsection, the System shall calculate the
17
amount of the payment and bill the employer for that amount.
18
The bill shall specify the calculation used to determine the
19
amount due. If the employer disputes the amount of the bill, it
20
may, within 30 days after receipt of the bill, apply to the
21
System in writing for a recalculation. The application must
22
specify in detail the grounds of the dispute. Upon receiving a
23
timely application for recalculation, the System shall review
24
the application and, if appropriate, recalculate the amount
25
due.
26

The employer contributions required under this subsection

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1
may be paid in the form of a lump sum within 90 days after
2
issuance of the bill. If the employer contributions are not
3
paid within 90 days after issuance of the bill, then interest
4
will be charged at a rate equal to the System's annual
5
actuarially assumed rate of return on investment compounded
6
annually from the 91st day after issuance of the bill. All
7
payments must be received within 3 years after issuance of the
8
bill. If the employer fails to make complete payment,
9
including applicable interest, within 3 years, then the System
10
may, after giving notice to the employer, certify the
11
delinquent amount to the State Comptroller, and the
12
Comptroller shall thereupon deduct the certified delinquent
13
amount from State funds payable to the employer and pay them
14
instead to the System.
15

This subsection (j-5) does not apply to a participant's
16
earnings to the extent an employer pays the employer normal
17
cost of such earnings.
18

The changes made to this subsection (j-5) by Public Act
19
100-624 are intended to apply retroactively to July 6, 2017
20
(the effective date of Public Act 100-23).
21

(k) The Illinois Community College Board shall adopt rules
22
for recommending lists of promotional positions submitted to
23
the Board by community colleges and for reviewing the
24
promotional lists on an annual basis. When recommending
25
promotional lists, the Board shall consider the similarity of
26
the positions submitted to those positions recognized for

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1
State universities by the State Universities Civil Service
2
System. The Illinois Community College Board shall file a copy
3
of its findings with the System. The System shall consider the
4
findings of the Illinois Community College Board when making
5
determinations under this Section. The System shall not
6
exclude any earnings increases resulting from a promotion when
7
the promotion was not submitted by a community college.
8
Nothing in this subsection (k) shall require any community
9
college to submit any information to the Community College
10
Board.
11

(l) For purposes of determining the required State
12
contribution to the System, the value of the System's assets
13
shall be equal to the actuarial value of the System's assets,
14
which shall be calculated as follows:
15

As of June 30, 2008, the actuarial value of the System's
16
assets shall be equal to the market value of the assets as of
17
that date. In determining the actuarial value of the System's
18
assets for fiscal years after June 30, 2008, any actuarial
19
gains or losses from investment return incurred in a fiscal
20
year shall be recognized in equal annual amounts over the
21
5-year period following that fiscal year.
22

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

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1
(Source: P.A. 104-284, eff. 1-1-26
.)

2

(40 ILCS 5/16-158)

(from Ch. 108 1/2, par. 16-158)
3

Sec. 16-158.
Contributions by State and other employing
4
units.
5

(a) The State shall make contributions to the System by
6
means of appropriations from the Common School Fund and other
7
State funds of amounts which, together with other employer
8
contributions, employee contributions, investment income, and
9
other income, will be sufficient to meet the cost of
10
maintaining and administering the System on a 90% funded basis
11
in accordance with actuarial recommendations.
12

The Board shall determine the amount of State
13
contributions required for each fiscal year on the basis of
14
the actuarial tables and other assumptions adopted by the
15
Board and the recommendations of the actuary, using the
16
formula in subsection (b-3)
or Section 1A-202, whichever is
17
applicable
.
18

(a-1) Annually, on or before November 15 until November
19
15, 2011, the Board shall certify to the Governor the amount of
20
the required State contribution for the coming fiscal year.
21
The certification under this subsection (a-1) shall include a
22
copy of the actuarial recommendations upon which it is based
23
and shall specifically identify the System's projected State
24
normal cost for that fiscal year.
25

On or before May 1, 2004, the Board shall recalculate and

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recertify to the Governor the amount of the required State
2
contribution to the System for State fiscal year 2005, taking
3
into account the amounts appropriated to and received by the
4
System under subsection (d) of Section 7.2 of the General
5
Obligation Bond Act.
6

On or before July 1, 2005, the Board shall recalculate and
7
recertify to the Governor the amount of the required State
8
contribution to the System for State fiscal year 2006, taking
9
into account the changes in required State contributions made
10
by Public Act 94-4.
11

On or before April 1, 2011, the Board shall recalculate
12
and recertify to the Governor the amount of the required State
13
contribution to the System for State fiscal year 2011,
14
applying the changes made by Public Act 96-889 to the System's
15
assets and liabilities as of June 30, 2009 as though Public Act
16
96-889 was approved on that date.
17

(a-5) On or before November 1 of each year, beginning
18
November 1, 2012, the Board shall submit to the State Actuary,
19
the Governor, and the General Assembly a proposed
20
certification of the amount of the required State contribution
21
to the System for the next fiscal year, along with all of the
22
actuarial assumptions, calculations, and data upon which that
23
proposed certification is based. On or before January 1 of
24
each year, beginning January 1, 2013, the State Actuary shall
25
issue a preliminary report concerning the proposed
26
certification and identifying, if necessary, recommended

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changes in actuarial assumptions that the Board must consider
2
before finalizing its certification of the required State
3
contributions. On or before January 15, 2013 and each January
4
15 thereafter, the Board shall certify to the Governor and the
5
General Assembly the amount of the required State contribution
6
for the next fiscal year. The Board's certification must note
7
any deviations from the State Actuary's recommended changes,
8
the reason or reasons for not following the State Actuary's
9
recommended changes, and the fiscal impact of not following
10
the State Actuary's recommended changes on the required State
11
contribution.
12

(a-10) By November 1, 2017, the Board shall recalculate
13
and recertify to the State Actuary, the Governor, and the
14
General Assembly the amount of the State contribution to the
15
System for State fiscal year 2018, taking into account the
16
changes in required State contributions made by Public Act
17
100-23. The State Actuary shall review the assumptions and
18
valuations underlying the Board's revised certification and
19
issue a preliminary report concerning the proposed
20
recertification and identifying, if necessary, recommended
21
changes in actuarial assumptions that the Board must consider
22
before finalizing its certification of the required State
23
contributions. The Board's final certification must note any
24
deviations from the State Actuary's recommended changes, the
25
reason or reasons for not following the State Actuary's
26
recommended changes, and the fiscal impact of not following

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the State Actuary's recommended changes on the required State
2
contribution.
3

(a-15) On or after June 15, 2019, but no later than June
4
30, 2019, the Board shall recalculate and recertify to the
5
Governor and the General Assembly the amount of the State
6
contribution to the System for State fiscal year 2019, taking
7
into account the changes in required State contributions made
8
by Public Act 100-587. The recalculation shall be made using
9
assumptions adopted by the Board for the original fiscal year
10
2019 certification. The monthly voucher for the 12th month of
11
fiscal year 2019 shall be paid by the Comptroller after the
12
recertification required pursuant to this subsection is
13
submitted to the Governor, Comptroller, and General Assembly.
14
The recertification submitted to the General Assembly shall be
15
filed with the Clerk of the House of Representatives and the
16
Secretary of the Senate in electronic form only, in the manner
17
that the Clerk and the Secretary shall direct.
18

(b) Through State fiscal year 1995, the State
19
contributions shall be paid to the System in accordance with
20
Section 18-7 of the School Code.
21

(b-1) Unless otherwise directed by the Comptroller under
22
subsection (b-1.1)
or as otherwise provided in this
23
subsection
, the Board shall submit vouchers for payment of
24
State contributions to the System for the applicable month on
25
the 15th day of each month, or as soon thereafter as may be
26
practicable. The amount vouchered for a monthly payment shall

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total one-twelfth of the required annual State contribution
2
certified under subsection (a-1).
Beginning State fiscal year
3
2027 and through State fiscal year 2045, on the first day of
4
each State fiscal year, the Board shall submit a voucher for
5
the payment of the State contribution for that State fiscal
6
year, as certified by the Board, whichever is applicable.

7

(b-1.1)
Until State fiscal year 2027 and for State fiscal
8
year 2046 or thereafter

Beginning in State fiscal year 2025
,
9
if the Comptroller requests that the Board submit, during a
10
State fiscal year, vouchers for multiple monthly payments for
11
the advance payment of State contributions due to the System
12
for that State fiscal year, then the Board shall submit those
13
additional vouchers as directed by the Comptroller,
14
notwithstanding subsection (b-1). Unless an act of
15
appropriations provides otherwise, nothing in this Section
16
authorizes the Board to submit, in a State fiscal year,
17
vouchers for the payment of State contributions to the System
18
in an amount that exceeds the rate of payroll that is certified
19
by the System under this Section for that State fiscal year.
20

(b-1.2) The vouchers described in subsections (b-1) and
21
(b-1.1) shall be paid by the State Comptroller and Treasurer
22
by warrants drawn on the funds appropriated to the System for
23
that fiscal year.
24

If in any month the amount remaining unexpended from all
25
other appropriations to the System for the applicable fiscal
26
year (including the appropriations to the System under Section

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1
8.12 of the State Finance Act and Section 1 of the State
2
Pension Funds Continuing Appropriation Act) is less than the
3
amount lawfully vouchered under this subsection, the
4
difference shall be paid from the Common School Fund under the
5
continuing appropriation authority provided in Section 1.1 of
6
the State Pension Funds Continuing Appropriation Act.
7

(b-2) Allocations from the Common School Fund apportioned
8
to school districts not coming under this System shall not be
9
diminished or affected by the provisions of this Article.
10

(b-3) For State fiscal years 2012 through
2031

2045
, the
11
minimum contribution to the System to be made by the State for
12
each fiscal year shall be an amount determined by the System to
13
be sufficient to bring the total assets of the System
, not
14
including proceeds derived from the sale of pension obligation
15
bonds,
up to 90% of the total actuarial liabilities of the
16
System by the end of State fiscal year 2045. In making these
17
determinations, the required State contribution shall be
18
calculated each year as a level percentage of payroll over the
19
years remaining to and including fiscal year 2045 and shall be
20
determined under the projected unit credit actuarial cost
21
method.
Proceeds derived from the sale of pension obligation
22
bonds issued under Section 1A-202 may not be used to satisfy or
23
replace any minimum contribution required under this Section
24
or this Code.

25

For State fiscal years 2032 through 2045, the minimum
26
contribution to the System shall be the amount determined

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1
under Section 1A-202.

2

For each of State fiscal years 2018, 2019, and 2020, the
3
State shall make an additional contribution to the System
4
equal to 2% of the total payroll of each employee who is deemed
5
to have elected the benefits under Section 1-161 or who has
6
made the election under subsection (c) of Section 1-161.
7

A change in an actuarial or investment assumption that
8
increases or decreases the required State contribution and
9
first applies in State fiscal year 2018 or thereafter shall be
10
implemented in equal annual amounts over a 5-year period
11
beginning in the State fiscal year in which the actuarial
12
change first applies to the required State contribution.
13

A change in an actuarial or investment assumption that
14
increases or decreases the required State contribution and
15
first applied to the State contribution in fiscal year 2014,
16
2015, 2016, or 2017 shall be implemented:
17

(i) as already applied in State fiscal years before
18

2018; and
19

(ii) in the portion of the 5-year period beginning in
20

the State fiscal year in which the actuarial change first
21

applied that occurs in State fiscal year 2018 or
22

thereafter, by calculating the change in equal annual
23

amounts over that 5-year period and then implementing it
24

at the resulting annual rate in each of the remaining
25

fiscal years in that 5-year period.
26

For State fiscal years 1996 through 2005, the State

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contribution to the System, as a percentage of the applicable
2
employee payroll, shall be increased in equal annual
3
increments so that by State fiscal year 2011, the State is
4
contributing at the rate required under this Section; except
5
that in the following specified State fiscal years, the State
6
contribution to the System shall not be less than the
7
following indicated percentages of the applicable employee
8
payroll, even if the indicated percentage will produce a State
9
contribution in excess of the amount otherwise required under
10
this subsection and subsection (a), and notwithstanding any
11
contrary certification made under subsection (a-1) before May
12
27, 1998 (the effective date of Public Act 90-582): 10.02% in
13
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
14
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
15

Notwithstanding any other provision of this Article, the
16
total required State contribution for State fiscal year 2006
17
is $534,627,700.
18

Notwithstanding any other provision of this Article, the
19
total required State contribution for State fiscal year 2007
20
is $738,014,500.
21

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

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this Section.
2

Notwithstanding any other provision of this Article, the
3
total required State contribution for State fiscal year 2010
4
is $2,089,268,000 and shall be made from the proceeds of bonds
5
sold in fiscal year 2010 pursuant to Section 7.2 of the General
6
Obligation Bond Act, less (i) the pro rata share of bond sale
7
expenses determined by the System's share of total bond
8
proceeds, (ii) any amounts received from the Common School
9
Fund in fiscal year 2010, and (iii) any reduction in bond
10
proceeds due to the issuance of discounted bonds, if
11
applicable.
12

Notwithstanding any other provision of this Article, the
13
total required State contribution for State fiscal year 2011
14
is the amount recertified by the System on or before April 1,
15
2011 pursuant to subsection (a-1) of this Section and shall be
16
made from the proceeds of bonds sold in fiscal year 2011
17
pursuant to Section 7.2 of the General Obligation Bond Act,
18
less (i) the pro rata share of bond sale expenses determined by
19
the System's share of total bond proceeds, (ii) any amounts
20
received from the Common School Fund in fiscal year 2011, and
21
(iii) any reduction in bond proceeds due to the issuance of
22
discounted bonds, if applicable. This amount shall include, in
23
addition to the amount certified by the System, an amount
24
necessary to meet employer contributions required by the State
25
as an employer under paragraph (e) of this Section, which may
26
also be used by the System for contributions required by

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paragraph (a) of Section 16-127.
2

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

Amounts received by the System pursuant to Section 25 of
7
the Budget Stabilization Act or Section 8.12 of the State
8
Finance Act in any fiscal year do not reduce and do not
9
constitute payment of any portion of the minimum State
10
contribution required under this Article in that fiscal year.
11
Such amounts shall not reduce, and shall not be included in the
12
calculation of, the required State contributions under this
13
Article in any future year until the System has reached a
14
funding ratio of at least 90%. A reference in this Article to
15
the "required State contribution" or any substantially similar
16
term does not include or apply to any amounts payable to the
17
System under Section 25 of the Budget Stabilization Act.
18

Notwithstanding any other provision of this Section, the
19
required State contribution for State fiscal year 2005 and for
20
fiscal year 2008 and each fiscal year thereafter, as
21
calculated under this Section and certified under subsection
22
(a-1), shall not exceed an amount equal to (i) the amount of
23
the required State contribution that would have been
24
calculated under this Section for that fiscal year if the
25
System had not received any payments under subsection (d) of
26
Section 7.2 of the General Obligation Bond Act, minus (ii) the

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

(b-4) Beginning in fiscal year 2018, each employer under
18
this Article shall pay to the System a required contribution
19
determined as a percentage of projected payroll and sufficient
20
to produce an annual amount equal to:
21

(i) for each of fiscal years 2018, 2019, and 2020, the
22

defined benefit normal cost of the defined benefit plan,
23

less the employee contribution, for each employee of that
24

employer who has elected or who is deemed to have elected
25

the benefits under Section 1-161 or who has made the
26

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

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year 2021 and each fiscal year thereafter, the defined
2

benefit normal cost of the defined benefit plan, less the
3

employee contribution, plus 2%, for each employee of that
4

employer who has elected or who is deemed to have elected
5

the benefits under Section 1-161 or who has made the
6

election under subsection (b) of Section 1-161; plus
7

(ii) the amount required for that fiscal year to
8

amortize any unfunded actuarial accrued liability
9

associated with the present value of liabilities
10

attributable to the employer's account under Section
11

16-158.3, determined as a level percentage of payroll over
12

a 30-year rolling amortization period.
13

In determining contributions required under item (i) of
14
this subsection, the System shall determine an aggregate rate
15
for all employers, expressed as a percentage of projected
16
payroll.
17

In determining the contributions required under item (ii)
18
of this subsection, the amount shall be computed by the System
19
on the basis of the actuarial assumptions and tables used in
20
the most recent actuarial valuation of the System that is
21
available at the time of the computation.
22

The contributions required under this subsection (b-4)
23
shall be paid by an employer concurrently with that employer's
24
payroll payment period. The State, as the actual employer of
25
an employee, shall make the required contributions under this
26
subsection.

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1

(c) Payment of the required State contributions and of all
2
pensions, retirement annuities, death benefits, refunds, and
3
other benefits granted under or assumed by this System, and
4
all expenses in connection with the administration and
5
operation thereof, are obligations of the State.
6

If members are paid from special trust or federal funds
7
which are administered by the employing unit, whether school
8
district or other unit, the employing unit shall pay to the
9
System from such funds the full accruing retirement costs
10
based upon that service, which, beginning July 1, 2017, shall
11
be at a rate, expressed as a percentage of salary, equal to the
12
total employer's normal cost, expressed as a percentage of
13
payroll, as determined by the System. Employer contributions,
14
based on salary paid to members from federal funds, may be
15
forwarded by the distributing agency of the State of Illinois
16
to the System prior to allocation, in an amount determined in
17
accordance with guidelines established by such agency and the
18
System. Any contribution for fiscal year 2015 collected as a
19
result of the change made by Public Act 98-674 shall be
20
considered a State contribution under subsection (b-3) of this
21
Section.
22

(d) Effective July 1, 1986, any employer of a teacher as
23
defined in paragraph (8) of Section 16-106 shall pay the
24
employer's normal cost of benefits based upon the teacher's
25
service, in addition to employee contributions, as determined
26
by the System. Such employer contributions shall be forwarded

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1
monthly in accordance with guidelines established by the
2
System.
3

However, with respect to benefits granted under Section
4
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
5
of Section 16-106, the employer's contribution shall be 12%
6
(rather than 20%) of the member's highest annual salary rate
7
for each year of creditable service granted, and the employer
8
shall also pay the required employee contribution on behalf of
9
the teacher. For the purposes of Sections 16-133.4 and
10
16-133.5, a teacher as defined in paragraph (8) of Section
11
16-106 who is serving in that capacity while on leave of
12
absence from another employer under this Article shall not be
13
considered an employee of the employer from which the teacher
14
is on leave.
15

(e) Beginning July 1, 1998, every employer of a teacher
16
shall pay to the System an employer contribution computed as
17
follows:
18

(1) Beginning July 1, 1998 through June 30, 1999, the
19

employer contribution shall be equal to 0.3% of each
20

teacher's salary.
21

(2) Beginning July 1, 1999 and thereafter, the
22

employer contribution shall be equal to 0.58% of each
23

teacher's salary.
24
The school district or other employing unit may pay these
25
employer contributions out of any source of funding available
26
for that purpose and shall forward the contributions to the

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1
System on the schedule established for the payment of member
2
contributions.
3

These employer contributions are intended to offset a
4
portion of the cost to the System of the increases in
5
retirement benefits resulting from Public Act 90-582.
6

Each employer of teachers is entitled to a credit against
7
the contributions required under this subsection (e) with
8
respect to salaries paid to teachers for the period January 1,
9
2002 through June 30, 2003, equal to the amount paid by that
10
employer under subsection (a-5) of Section 6.6 of the State
11
Employees Group Insurance Act of 1971 with respect to salaries
12
paid to teachers for that period.
13

The additional 1% employee contribution required under
14
Section 16-152 by Public Act 90-582 is the responsibility of
15
the teacher and not the teacher's employer, unless the
16
employer agrees, through collective bargaining or otherwise,
17
to make the contribution on behalf of the teacher.
18

If an employer is required by a contract in effect on May
19
1, 1998 between the employer and an employee organization to
20
pay, on behalf of all its full-time employees covered by this
21
Article, all mandatory employee contributions required under
22
this Article, then the employer shall be excused from paying
23
the employer contribution required under this subsection (e)
24
for the balance of the term of that contract. The employer and
25
the employee organization shall jointly certify to the System
26
the existence of the contractual requirement, in such form as

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1
the System may prescribe. This exclusion shall cease upon the
2
termination, extension, or renewal of the contract at any time
3
after May 1, 1998.
4

(f) If the amount of a teacher's salary for any school year
5
used to determine final average salary exceeds the member's
6
annual full-time salary rate with the same employer for the
7
previous school year by more than 6%, the teacher's employer
8
shall pay to the System, in addition to all other payments
9
required under this Section and in accordance with guidelines
10
established by the System, the present value of the increase
11
in benefits resulting from the portion of the increase in
12
salary that is in excess of 6%. This present value shall be
13
computed by the System on the basis of the actuarial
14
assumptions and tables used in the most recent actuarial
15
valuation of the System that is available at the time of the
16
computation. If a teacher's salary for the 2005-2006 school
17
year is used to determine final average salary under this
18
subsection (f), then the changes made to this subsection (f)
19
by Public Act 94-1057 shall apply in calculating whether the
20
increase in his or her salary is in excess of 6%. For the
21
purposes of this Section, change in employment under Section
22
10-21.12 of the School Code on or after June 1, 2005 shall
23
constitute a change in employer. The System may require the
24
employer to provide any pertinent information or
25
documentation. The changes made to this subsection (f) by
26
Public Act 94-1111 apply without regard to whether the teacher

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was in service on or after its effective date.
2

Whenever it determines that a payment is or may be
3
required under this subsection, the System shall calculate the
4
amount of the payment and bill the employer for that amount.
5
The bill shall specify the calculations used to determine the
6
amount due. If the employer disputes the amount of the bill, it
7
may, within 30 days after receipt of the bill, apply to the
8
System in writing for a recalculation. The application must
9
specify in detail the grounds of the dispute and, if the
10
employer asserts that the calculation is subject to subsection
11
(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
12
must include an affidavit setting forth and attesting to all
13
facts within the employer's knowledge that are pertinent to
14
the applicability of that subsection. Upon receiving a timely
15
application for recalculation, the System shall review the
16
application and, if appropriate, recalculate the amount due.
17

The employer contributions required under this subsection
18
(f) may be paid in the form of a lump sum within 90 days after
19
receipt of the bill. If the employer contributions are not
20
paid within 90 days after receipt of the bill, then interest
21
will be charged at a rate equal to the System's annual
22
actuarially assumed rate of return on investment compounded
23
annually from the 91st day after receipt of the bill. Payments
24
must be concluded within 7 years after the employer's receipt
25
of the bill.
26

(f-1) (Blank).

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1

(g) This subsection (g) applies only to payments made or
2
salary increases given on or after June 1, 2005 but before July
3
1, 2011. The changes made by Public Act 94-1057 shall not
4
require the System to refund any payments received before July
5
31, 2006 (the effective date of Public Act 94-1057).
6

When assessing payment for any amount due under subsection
7
(f), the System shall exclude salary increases paid to
8
teachers under contracts or collective bargaining agreements
9
entered into, amended, or renewed before June 1, 2005.
10

When assessing payment for any amount due under subsection
11
(f), the System shall exclude salary increases paid to a
12
teacher at a time when the teacher is 10 or more years from
13
retirement eligibility under Section 16-132 or 16-133.2.
14

When assessing payment for any amount due under subsection
15
(f), the System shall exclude salary increases resulting from
16
overload work, including summer school, when the school
17
district has certified to the System, and the System has
18
approved the certification, that (i) the overload work is for
19
the sole purpose of classroom instruction in excess of the
20
standard number of classes for a full-time teacher in a school
21
district during a school year and (ii) the salary increases
22
are equal to or less than the rate of pay for classroom
23
instruction computed on the teacher's current salary and work
24
schedule.
25

When assessing payment for any amount due under subsection
26
(f), the System shall exclude a salary increase resulting from

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a promotion (i) for which the employee is required to hold a
2
certificate or supervisory endorsement issued by the State
3
Teacher Certification Board that is a different certification
4
or supervisory endorsement than is required for the teacher's
5
previous position and (ii) to a position that has existed and
6
been filled by a member for no less than one complete academic
7
year and the salary increase from the promotion is an increase
8
that results in an amount no greater than the lesser of the
9
average salary paid for other similar positions in the
10
district requiring the same certification or the amount
11
stipulated in the collective bargaining agreement for a
12
similar position requiring the same certification.
13

When assessing payment for any amount due under subsection
14
(f), the System shall exclude any payment to the teacher from
15
the State of Illinois or the State Board of Education over
16
which the employer does not have discretion, notwithstanding
17
that the payment is included in the computation of final
18
average salary.
19

(g-5) When assessing payment for any amount due under
20
subsection (f), the System shall exclude salary increases
21
resulting from overload or stipend work performed in a school
22
year subsequent to a school year in which the employer was
23
unable to offer or allow to be conducted overload or stipend
24
work due to an emergency declaration limiting such activities.
25

(g-10) When assessing payment for any amount due under
26
subsection (f), the System shall exclude salary increases

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resulting from increased instructional time that exceeded the
2
instructional time required during the 2019-2020 school year.
3

(g-15) When assessing payment for any amount due under
4
subsection (f), the System shall exclude salary increases
5
resulting from teaching summer school on or after May 1, 2021
6
and before September 15, 2022.
7

(g-20) When assessing payment for any amount due under
8
subsection (f), the System shall exclude salary increases
9
necessary to bring a school board in compliance with Public
10
Act 101-443 or this amendatory Act of the 103rd General
11
Assembly.
12

(h) When assessing payment for any amount due under
13
subsection (f), the System shall exclude any salary increase
14
described in subsection (g) of this Section given on or after
15
July 1, 2011 but before July 1, 2014 under a contract or
16
collective bargaining agreement entered into, amended, or
17
renewed on or after June 1, 2005 but before July 1, 2011.
18
Notwithstanding any other provision of this Section, any
19
payments made or salary increases given after June 30, 2014
20
shall be used in assessing payment for any amount due under
21
subsection (f) of this Section.
22

(i) The System shall prepare a report and file copies of
23
the report with the Governor and the General Assembly by
24
January 1, 2007 that contains all of the following
25
information:
26

(1) The number of recalculations required by the

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1

changes made to this Section by Public Act 94-1057 for
2

each employer.
3

(2) The dollar amount by which each employer's
4

contribution to the System was changed due to
5

recalculations required by Public Act 94-1057.
6

(3) The total amount the System received from each
7

employer as a result of the changes made to this Section by
8

Public Act 94-4.
9

(4) The increase in the required State contribution
10

resulting from the changes made to this Section by Public
11

Act 94-1057.
12

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

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documentation.
2

Whenever it determines that a payment is or may be
3
required under this subsection, the System shall calculate the
4
amount of the payment and bill the employer for that amount.
5
The bill shall specify the calculations used to determine the
6
amount due. If the employer disputes the amount of the bill, it
7
may, within 30 days after receipt of the bill, apply to the
8
System in writing for a recalculation. The application must
9
specify in detail the grounds of the dispute. Upon receiving a
10
timely application for recalculation, the System shall review
11
the application and, if appropriate, recalculate the amount
12
due.
13

The employer contributions required under this subsection
14
may be paid in the form of a lump sum within 90 days after
15
receipt of the bill. If the employer contributions are not
16
paid within 90 days after receipt of the bill, then interest
17
will be charged at a rate equal to the System's annual
18
actuarially assumed rate of return on investment compounded
19
annually from the 91st day after receipt of the bill. Payments
20
must be concluded within 3 years after the employer's receipt
21
of the bill.
22

(j) 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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1
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

(k) 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. 103-515, eff. 8-11-23; 103-588, eff. 6-5-24;
13
104-284, eff. 1-1-26
.)

14

(40 ILCS 5/18-131)

(from Ch. 108 1/2, par. 18-131)
15

Sec. 18-131.
Financing; employer contributions.
16

(a) The State of Illinois shall make contributions to this
17
System by appropriations of the amounts which, together with
18
the contributions of participants, net earnings on
19
investments, and other income, will meet the costs of
20
maintaining and administering this System on a 90% funded
21
basis in accordance with actuarial recommendations.
22

(b) The Board shall determine the amount of State
23
contributions required for each fiscal year on the basis of
24
the actuarial tables and other assumptions adopted by the
25
Board and the prescribed rate of interest, using the formula

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1
in subsection (c)
or Section 1A-202, whichever is applicable
.
2

(c) For State fiscal years 2012 through
2031

2045
, the
3
minimum contribution to the System to be made by the State for
4
each fiscal year shall be an amount determined by the System to
5
be sufficient to bring the total assets of the System
, not
6
including proceeds derived from the sale of pension obligation
7
bonds,
up to 90% of the total actuarial liabilities of the
8
System by the end of State fiscal year 2045. In making these
9
determinations, the required State contribution shall be
10
calculated each year as a level percentage of payroll over the
11
years remaining to and including fiscal year 2045 and shall be
12
determined under the projected unit credit actuarial cost
13
method.
Proceeds derived from the sale of pension obligation
14
bonds issued under Section 1A-202 may not be used to satisfy or
15
replace any minimum contribution required under this Section
16
or this Code.

17

For State fiscal years 2032 through 2045, the minimum
18
contribution to the System shall be the amount determined
19
under Section 1A-202.

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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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.
18

Notwithstanding any other provision of this Article, the
19
total required State contribution for State fiscal year 2006
20
is $29,189,400.
21

Notwithstanding any other provision of this Article, the
22
total required State contribution for State fiscal year 2007
23
is $35,236,800.
24

For each of State fiscal years 2008 through 2009, the
25
State contribution to the System, as a percentage of the
26
applicable employee payroll, shall be increased in equal

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annual increments from the required State contribution for
2
State fiscal year 2007, so that by State fiscal year 2011, the
3
State is contributing at the rate otherwise required under
4
this Section.
5

Notwithstanding any other provision of this Article, the
6
total required State contribution for State fiscal year 2010
7
is $78,832,000 and shall be made from the proceeds of bonds
8
sold in fiscal year 2010 pursuant to Section 7.2 of the General
9
Obligation Bond Act, less (i) the pro rata share of bond sale
10
expenses determined by the System's share of total bond
11
proceeds, (ii) any amounts received from the General Revenue
12
Fund in fiscal year 2010, and (iii) any reduction in bond
13
proceeds due to the issuance of discounted bonds, if
14
applicable.
15

Notwithstanding any other provision of this Article, the
16
total required State contribution for State fiscal year 2011
17
is the amount recertified by the System on or before April 1,
18
2011 pursuant to Section 18-140 and shall be made from the
19
proceeds of bonds sold in fiscal year 2011 pursuant to Section
20
7.2 of the General Obligation Bond Act, less (i) the pro rata
21
share of bond sale expenses determined by the System's share
22
of total bond proceeds, (ii) any amounts received from the
23
General Revenue Fund in fiscal year 2011, and (iii) any
24
reduction in bond proceeds due to the issuance of discounted
25
bonds, if applicable.
26

Beginning in State fiscal year 2046, the minimum State

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contribution for each fiscal year shall be the amount needed
2
to maintain the total assets of the System at 90% of the total
3
actuarial liabilities of the System.
4

Amounts received by the System pursuant to Section 25 of
5
the Budget Stabilization Act or Section 8.12 of the State
6
Finance Act in any fiscal year do not reduce and do not
7
constitute payment of any portion of the minimum State
8
contribution required under this Article in that fiscal year.
9
Such amounts shall not reduce, and shall not be included in the
10
calculation of, the required State contributions under this
11
Article in any future year until the System has reached a
12
funding ratio of at least 90%. A reference in this Article to
13
the "required State contribution" or any substantially similar
14
term does not include or apply to any amounts payable to the
15
System under Section 25 of the Budget Stabilization Act.
16

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

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

(d) For purposes of determining the required State
16
contribution to the System, the value of the System's assets
17
shall be equal to the actuarial value of the System's assets,
18
which shall be calculated as follows:
19

As of June 30, 2008, the actuarial value of the System's
20
assets shall be equal to the market value of the assets as of
21
that date. In determining the actuarial value of the System's
22
assets for fiscal years after June 30, 2008, any actuarial
23
gains or losses from investment return incurred in a fiscal
24
year shall be recognized in equal annual amounts over the
25
5-year period following that fiscal year.
26

(e) For purposes of determining the required State

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contribution to the system for a particular year, the
2
actuarial value of assets shall be assumed to earn a rate of
3
return equal to the system's actuarially assumed rate of
4
return.
5
(Source: P.A. 100-23, eff. 7-6-17.)

6

(40 ILCS 5/18-140)

(from Ch. 108 1/2, par. 18-140)
7

Sec. 18-140.
To certify required State contributions and
8
submit vouchers.
9

(a) The Board shall certify to the Governor, on or before
10
November 15 of each year until November 15, 2011, the amount of
11
the required State contribution to the System for the
12
following fiscal year and shall specifically identify the
13
System's projected State normal cost for that fiscal year. The
14
certification shall include a copy of the actuarial
15
recommendations upon which it is based and shall specifically
16
identify the System's projected State normal cost for that
17
fiscal year.
18

On or before November 1 of each year, beginning November
19
1, 2012, the Board shall submit to the State Actuary, the
20
Governor, and the General Assembly a proposed certification of
21
the amount of the required State contribution to the System
22
for the next fiscal year, along with all of the actuarial
23
assumptions, calculations, and data upon which that proposed
24
certification is based. On or before January 1 of each year
25
beginning January 1, 2013, the State Actuary shall issue a

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preliminary report concerning the proposed certification and
2
identifying, if necessary, recommended changes in actuarial
3
assumptions that the Board must consider before finalizing its
4
certification of the required State contributions. On or
5
before January 15, 2013 and every January 15 thereafter, the
6
Board shall certify to the Governor and the General Assembly
7
the amount of the required State contribution for the next
8
fiscal year. The Board's certification must note any
9
deviations from the State Actuary's recommended changes, the
10
reason or reasons for not following the State Actuary's
11
recommended changes, and the fiscal impact of not following
12
the State Actuary's recommended changes on the required State
13
contribution.
14

On or before May 1, 2004, the Board shall recalculate and
15
recertify to the Governor the amount of the required State
16
contribution to the System for State fiscal year 2005, taking
17
into account the amounts appropriated to and received by the
18
System under subsection (d) of Section 7.2 of the General
19
Obligation Bond Act.
20

On or before July 1, 2005, the Board shall recalculate and
21
recertify to the Governor the amount of the required State
22
contribution to the System for State fiscal year 2006, taking
23
into account the changes in required State contributions made
24
by this amendatory Act of the 94th General Assembly.
25

On or before April 1, 2011, the Board shall recalculate
26
and recertify to the Governor the amount of the required State

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contribution to the System for State fiscal year 2011,
2
applying the changes made by Public Act 96-889 to the System's
3
assets and liabilities as of June 30, 2009 as though Public Act
4
96-889 was approved on that date.
5

By November 1, 2017, the Board shall recalculate and
6
recertify to the State Actuary, the Governor, and the General
7
Assembly the amount of the State contribution to the System
8
for State fiscal year 2018, taking into account the changes in
9
required State contributions made by this amendatory Act of
10
the 100th General Assembly. The State Actuary shall review the
11
assumptions and valuations underlying the Board's revised
12
certification and issue a preliminary report concerning the
13
proposed recertification and identifying, if necessary,
14
recommended changes in actuarial assumptions that the Board
15
must consider before finalizing its certification of the
16
required State contributions. The Board's final certification
17
must note any deviations from the State Actuary's recommended
18
changes, the reason or reasons for not following the State
19
Actuary's recommended changes, and the fiscal impact of not
20
following the State Actuary's recommended changes on the
21
required State contribution.
22

(b) Unless otherwise directed by the Comptroller under
23
subsection (b-1)
or as otherwise provided in this subsection
,
24
the Board shall submit vouchers for payment of State
25
contributions to the System for the applicable month on the
26
15th day of each month, or as soon thereafter as may be

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practicable. The amount vouchered for a monthly payment shall
2
total one-twelfth of the required annual State contribution
3
certified under subsection (a).
Beginning State fiscal year
4
2027 and through State fiscal year 2045, on the first day of
5
each State fiscal year, the Board shall submit a voucher for
6
the payment of the State contribution for that State fiscal
7
year, as certified by the Board or the State Actuary,
8
whichever is applicable.

9

(b-1)
Until State fiscal year 2027 and for State fiscal
10
year 2046 and thereafter

Beginning in State fiscal year 2025
,
11
if the Comptroller requests that the Board submit, during a
12
State fiscal year, vouchers for multiple monthly payments for
13
the advance payment of State contributions due to the System
14
for that State fiscal year, then the Board shall submit those
15
additional vouchers as directed by the Comptroller,
16
notwithstanding subsection (b). Unless an act of
17
appropriations provides otherwise, nothing in this Section
18
authorizes the Board to submit, in a State fiscal year,
19
vouchers for the payment of State contributions to the System
20
in an amount that exceeds the rate of payroll that is certified
21
by the System under this Section for that State fiscal year.
22

(b-2) The vouchers described in subsections (b) and (b-1)
23
shall be paid by the State Comptroller and Treasurer by
24
warrants drawn on the funds appropriated to the System for
25
that fiscal year.
26

If in any month the amount remaining unexpended from all

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other appropriations to the System for the applicable fiscal
2
year (including the appropriations to the System under Section
3
8.12 of the State Finance Act and Section 1 of the State
4
Pension Funds Continuing Appropriation Act) is less than the
5
amount lawfully vouchered under this Section, the difference
6
shall be paid from the General Revenue Fund under the
7
continuing appropriation authority provided in Section 1.1 of
8
the State Pension Funds Continuing Appropriation Act.
9
(Source: P.A. 103-588, eff. 6-5-24.)

10

Section 20.
The State Pension Funds Continuing
11
Appropriation Act is amended by changing Section 1.1 as
12
follows:

13

(40 ILCS 15/1.1)
14

Sec. 1.1.
Appropriations to certain retirement systems.
15

(a) There is hereby appropriated from the General Revenue
16
Fund to the General Assembly Retirement System, on a
17
continuing monthly basis, the amount, if any, by which the
18
total available amount of all other appropriations to that
19
retirement system for the payment of State contributions is
20
less than the total amount of the vouchers for required State
21
contributions lawfully submitted by the retirement system for
22
that month under Section 2-134 of the Illinois Pension Code.
23

For State fiscal years 2027 through 2045, there is hereby
24
appropriated from the General Revenue Fund to the General

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Assembly Retirement System, on a continuing annual basis, the
2
amount, if any, by which the total available amount of all
3
other appropriations to that retirement system for the payment
4
of State contributions is less than the total amount of the
5
vouchers for required State contributions lawfully submitted
6
by the retirement system for that State fiscal year under
7
Section 2-134 of the Illinois Pension Code.

8

(b) There is hereby appropriated from the General Revenue
9
Fund to the State Universities Retirement System, on a
10
continuing monthly basis, the amount, if any, by which the
11
total available amount of all other appropriations to that
12
retirement system for the payment of State contributions,
13
including any deficiency in the required contributions of the
14
optional retirement program established under Section 15-158.2
15
of the Illinois Pension Code, is less than the total amount of
16
the vouchers for required State contributions lawfully
17
submitted by the retirement system for that month under
18
Section 15-165 of the Illinois Pension Code.
19

For State fiscal years 2027 through 2045, there is hereby
20
appropriated from the General Revenue Fund to the State
21
Universities Retirement System, on a continuing annual basis,
22
the amount, if any, by which the total available amount of all
23
other appropriations to that retirement system for the payment
24
of State contributions, including any deficiency in the
25
required contributions of the optional retirement program
26
established under Section 15-158.2 of the Illinois Pension

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Code, is less than the total amount of the vouchers for
2
required State contributions lawfully submitted by the
3
retirement system for that State fiscal year under Section
4
15-165 of the Illinois Pension Code.

5

(c) There is hereby appropriated from the Common School
6
Fund to the Teachers' Retirement System of the State of
7
Illinois, on a continuing monthly basis, the amount, if any,
8
by which the total available amount of all other
9
appropriations to that retirement system for the payment of
10
State contributions is less than the total amount of the
11
vouchers for required State contributions lawfully submitted
12
by the retirement system for that month under Section 16-158
13
of the Illinois Pension Code.
14

For State fiscal years 2027 through 2045, there is hereby
15
appropriated from the Common School Fund to the Teachers'
16
Retirement System of the State of Illinois, on a continuing
17
annual basis, the amount, if any, by which the total available
18
amount of all other appropriations to that retirement system
19
for the payment of State contributions is less than the total
20
amount of the vouchers for required State contributions
21
lawfully submitted by the retirement system for that State
22
fiscal year under Section 16-158 of the Illinois Pension Code.

23

(d) There is hereby appropriated from the General Revenue
24
Fund to the Judges Retirement System of Illinois, on a
25
continuing monthly basis, the amount, if any, by which the
26
total available amount of all other appropriations to that

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retirement system for the payment of State contributions is
2
less than the total amount of the vouchers for required State
3
contributions lawfully submitted by the retirement system for
4
that month under Section 18-140 of the Illinois Pension Code.
5

For State fiscal years 2027 through 2045, there is hereby
6
appropriated from the General Revenue Fund to the Judges
7
Retirement System of Illinois, on a continuing annual basis,
8
the amount, if any, by which the total available amount of all
9
other appropriations to that retirement system for the payment
10
of State contributions is less than the total amount of the
11
vouchers for required State contributions lawfully submitted
12
by the retirement system for that State fiscal year under
13
Section 18-140 of the Illinois Pension Code.

14

(e) The continuing appropriations provided by subsections
15
(a), (b), (c), and (d) of this Section shall first be available
16
in State fiscal year 1996. The continuing appropriations
17
provided by subsection (h) of this Section shall first be
18
available as provided in that subsection (h).
19

(f) For State fiscal year 2010 only, the continuing
20
appropriations provided by this Section are equal to the
21
amount certified by each System on or before December 31,
22
2008, less (i) the gross proceeds of the bonds sold in fiscal
23
year 2010 under the authorization contained in subsection (a)
24
of Section 7.2 of the General Obligation Bond Act and (ii) any
25
amounts received from the State Pensions Fund.
26

(g) For State fiscal year 2011 only, the continuing

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appropriations provided by this Section are equal to the
2
amount certified by each System on or before April 1, 2011,
3
less (i) the gross proceeds of the bonds sold in fiscal year
4
2011 under the authorization contained in subsection (a) of
5
Section 7.2 of the General Obligation Bond Act and (ii) any
6
amounts received from the State Pensions Fund.
7

(h) There is hereby appropriated from the Common School
8
Fund to the Public School Teachers' Pension and Retirement
9
Fund of Chicago, on a continuing basis, the amount, if any, by
10
which the total available amount of all other State
11
appropriations to that Retirement Fund for the payment of
12
State contributions under Section 17-127 of the Illinois
13
Pension Code is less than the total amount of the vouchers for
14
required State contributions lawfully submitted by the
15
Retirement Fund or the State Board of Education, under that
16
Section 17-127.
17
(Source: P.A. 100-465, eff. 8-31-17.)

18

Section 99.
Effective date.
This Act takes effect upon
19
becoming law.

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INDEX

2

Statutes amended in order of appearance

3

40 ILCS 5/1A-202 new
4

40 ILCS 5/2-124
from Ch. 108 1/2, par. 2-124
5

40 ILCS 5/2-134
from Ch. 108 1/2, par. 2-134
6

40 ILCS 5/14-131
7

40 ILCS 5/15-155
from Ch. 108 1/2, par. 15-155
8

40 ILCS 5/16-158
from Ch. 108 1/2, par. 16-158
9

40 ILCS 5/18-131
from Ch. 108 1/2, par. 18-131
10

40 ILCS 5/18-140
from Ch. 108 1/2, par. 18-140
11

40 ILCS 15/1.1

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