40 ILCS 5/14-131
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 14 - State Employees' Retirement System Of Illinois

Sec. 14-131. Contributions by State.(a) The State shall make contributions to the System by appropriations of  amounts which, together with other employer contributions from trust, federal,  and other funds, employee contributions, investment income, and other income,  will be sufficient to meet the cost of maintaining and administering the System  on a 90% funded basis in accordance with actuarial recommendations.For the purposes of this Section and Section 14-135.08, references to State  contributions refer only to employer contributions and do not include employee  contributions that are picked up or otherwise paid by the State or a  department on behalf of the employee.(b) The Board shall determine the total amount of State contributions  required for each fiscal year on the basis of the actuarial tables and other  assumptions adopted by the Board, using the formula in subsection (e).The Board shall also determine a State contribution rate for each fiscal  year, expressed as a percentage of payroll, based on the total required State  contribution for that fiscal year (less the amount received by the System from  appropriations under Section 8.12 of the State Finance Act and Section 1 of the  State Pension Funds Continuing Appropriation Act, if any, for the fiscal year  ending on the June 30 immediately preceding the applicable November 15  certification deadline), the estimated payroll (including all forms of  compensation) for personal services rendered by eligible employees, and the  recommendations of the actuary.For the purposes of this Section and Section 14.1 of the State Finance Act,  the term "eligible employees" includes employees who participate in the System,  persons who may elect to participate in the System but have not so elected,  persons who are serving a qualifying period that is required for participation,  and annuitants employed by a department as described in subdivision (a)(1) or  (a)(2) of Section 14-111.(c) Contributions shall be made by the several departments for each pay  period by warrants drawn by the State Comptroller against their respective  funds or appropriations based upon vouchers stating the amount to be so  contributed.  These amounts shall be based on the full rate certified by the  Board under Section 14-135.08 for that fiscal year.  From March 5, 2004 (the effective date of Public Act 93-665) through the payment of the final payroll from fiscal year 2004  appropriations, the several departments shall not make contributions  for the remainder of fiscal year 2004 but shall instead make payments  as required under subsection (a-1) of Section 14.1 of the State Finance Act.  The several departments shall resume those contributions at the commencement of  fiscal year 2005.(c-1)  Notwithstanding subsection (c) of this Section, for fiscal years 2010, 2012, and each fiscal year thereafter, contributions by the several departments are not required to be made for General Revenue Funds payrolls processed by the Comptroller.  Payrolls paid by the several departments from all other State funds must continue to be processed pursuant to subsection (c) of this Section.(c-2) For State fiscal years 2010, 2012, and each fiscal year thereafter, on or as soon as possible after the 15th day of each month, the Board shall submit vouchers for payment of State contributions to the System, in a total monthly amount of one-twelfth of the fiscal year General Revenue Fund contribution as certified by the System pursuant to Section 14-135.08 of the Illinois Pension Code.(d) If an employee is paid from trust funds or federal funds, the  department or other employer shall pay employer contributions from those funds  to the System at the certified rate, unless the terms of the trust or the  federal-State agreement preclude the use of the funds for that purpose, in  which case the required employer contributions shall be paid by the State.(e) For State fiscal years 2012 through 2045, the minimum contribution  to the System to be made by the State for each fiscal year shall be an amount  determined by the System to be sufficient to bring the total assets of the  System up to 90% of the total actuarial liabilities of the System by the end  of State fiscal year 2045.  In making these determinations, the required State  contribution shall be calculated each year as a level percentage of payroll  over the years remaining to and including fiscal year 2045 and shall be  determined under the projected unit credit actuarial cost method.A change in an actuarial or investment assumption that increases or  decreases the required State contribution and first  applies in State fiscal year 2018 or thereafter shall be  implemented in equal annual amounts over a 5-year period  beginning in the State fiscal year in which the actuarial  change first applies to the required State contribution.A change in an actuarial or investment assumption that increases or  decreases the required State contribution and first  applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be  implemented:(i) as already applied in State fiscal years before     2018; and(ii) in the portion of the 5-year period beginning in     the State fiscal year in which the actuarial change first applied that occurs  in State fiscal year 2018 or thereafter, by calculating the change in equal annual amounts over that 5-year period and then implementing it at the resulting annual rate in each of the remaining fiscal years in that 5-year period.For State fiscal years 1996 through 2005, the State contribution to  the System, as a percentage of the applicable employee payroll, shall be  increased in equal annual increments so that by State fiscal year 2011, the  State is contributing at the rate required under this Section; except that  (i) for State fiscal year 1998, for all purposes of this Code and any other  law of this State, the certified percentage of the applicable employee payroll  shall be 5.052% for employees earning eligible creditable service under Section  14-110 and 6.500% for all other employees, notwithstanding any contrary  certification made under Section 14-135.08 before July 7, 1997 (the effective date of Public Act 90-65), and (ii)  in the following specified State fiscal years, the State contribution to  the System shall not be less than the following indicated percentages of the  applicable employee payroll, even if the indicated percentage will produce a  State contribution in excess of the amount otherwise required under this  subsection and subsection (a):  9.8% in FY 1999;  10.0% in FY 2000;  10.2% in FY 2001;  10.4% in FY 2002;  10.6% in FY 2003; and  10.8% in FY 2004.Beginning in State fiscal year 2046, the minimum State contribution for  each fiscal year shall be the amount needed to maintain the total assets of  the System at 90% of the total actuarial liabilities of the System.Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year.  Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%.  A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under  Section 25 of the Budget Stabilization Act.Notwithstanding any other provision of this Section, the required State  contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as  calculated under this Section and  certified under Section 14-135.08, shall not exceed an amount equal to (i) the  amount of the required State contribution that would have been calculated under  this Section for that fiscal year if the System had not received any payments  under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus  (ii) the portion of the State's total debt service payments for that fiscal  year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined  and certified by the Comptroller, that is the same as the System's portion of  the total moneys distributed under subsection (d) of Section 7.2 of the General  Obligation Bond Act.(f) (Blank).(g) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date.  In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year.(h) For purposes of determining the required State contribution to the System for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the System's actuarially assumed rate of return.(i) (Blank).(j) (Blank).(k) For fiscal year 2012 and each fiscal year thereafter, after the submission of all payments for eligible employees from personal services line items paid from the General Revenue Fund in the fiscal year have been made, the Comptroller shall provide to the System a certification of the sum of all expenditures in the fiscal year for personal services. Upon receipt of the certification, the System shall determine the amount due to the System based on the full rate certified by the Board under Section 14-135.08 for the fiscal year in order to meet the State's obligation under this Section. The System shall compare this amount due to the amount received by the System for the fiscal year. If the amount due is more than the amount received, the difference shall be termed the "Prior Fiscal Year Shortfall" for purposes of this Section, and the Prior Fiscal Year  Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing Appropriation Act. If the amount due is less than the amount received, the difference shall be termed the "Prior Fiscal Year Overpayment" for purposes of this Section, and the Prior Fiscal Year Overpayment shall be repaid by the System to the General Revenue Fund as soon as practicable after the certification. (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 101-10, eff. 6-5-19.)