40 ILCS 5/16-158
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 16 - Teachers' Retirement System Of The State Of Illinois

   (from Ch. 108 1/2, par. 16-158)(Text of Section from P.A. 102-16)Sec. 16-158. Contributions by State and other employing units.(a) The State shall make contributions to the System by means of  appropriations from the Common School Fund and other State funds of amounts  which, together with other employer contributions, 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.The Board shall determine the amount of State contributions required for  each fiscal year on the basis of the actuarial tables and other assumptions  adopted by the Board and the recommendations of the actuary, using the formula  in subsection (b-3).(a-1) Annually, on or before November 15  until November 15, 2011, the Board shall certify to the  Governor the amount of the required State contribution for the coming fiscal  year.  The certification under this subsection (a-1) shall include a copy of the actuarial recommendations  upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year.On or before May 1, 2004, the Board shall recalculate and recertify to  the Governor the amount of the required State contribution to the System for  State fiscal year 2005, taking into account the amounts appropriated to and  received by the System under subsection (d) of Section 7.2 of the General  Obligation Bond Act.On or before July 1, 2005, the Board shall recalculate and recertify  to the Governor the amount of the required State  contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by Public Act 94-4.On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.(a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-10) By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by Public Act 100-23. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-15)   On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by Public Act 100-587.  The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification.  The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly.  The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.(b) Through State fiscal year 1995, the State contributions shall be  paid to the System in accordance with Section 18-7 of the School Code.(b-1) Beginning in State fiscal year 1996, on the 15th day of each month,  or as soon thereafter as may be practicable, the Board shall submit vouchers  for payment of State contributions to the System, in a total monthly amount of  one-twelfth of the required annual State contribution certified under  subsection (a-1).  From March 5, 2004 (the  effective date of Public Act 93-665)  through June 30, 2004, the Board shall not submit vouchers for the  remainder of fiscal year 2004 in excess of the fiscal year 2004  certified contribution amount determined under this Section  after taking into consideration the transfer to the System  under subsection (a) of Section 6z-61 of the State Finance Act.  These vouchers shall be paid by the State Comptroller and  Treasurer by warrants drawn on the funds appropriated to the System for that  fiscal year.If in any month the amount remaining unexpended from all other appropriations  to the System for the applicable fiscal year (including the appropriations to  the System under Section 8.12 of the State Finance Act and Section 1 of the  State Pension Funds Continuing Appropriation Act) is less than the amount  lawfully vouchered under this subsection, the difference shall be paid from the  Common School Fund under the continuing appropriation authority provided in  Section 1.1 of the State Pension Funds Continuing Appropriation Act.(b-2) Allocations from the Common School Fund apportioned to school  districts not coming under this System shall not be diminished or affected by  the provisions of this Article.(b-3) 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.For each of State fiscal years 2018,  2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161.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 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), and notwithstanding any contrary certification made under  subsection (a-1) before May 27, 1998 (the effective date of Public Act 90-582):  10.02% in FY 1999;  10.77% in FY 2000;  11.47% in FY 2001;  12.16% in FY 2002;  12.86% in FY 2003; and  13.56% in FY 2004.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2006 is $534,627,700.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2007 is $738,014,500.For each of State fiscal years 2008 through 2009, the State contribution to  the System, as a percentage of the applicable employee payroll, shall be  increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $2,089,268,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.Notwithstanding any other provision of this Article, the  total required State contribution for State fiscal year 2011 is  the amount recertified by the System on or before April 1, 2011 pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds  sold in fiscal year 2011 pursuant to Section 7.2 of the General  Obligation Bond Act, less (i) the pro rata share of bond sale  expenses determined by the System's share of total bond  proceeds, (ii) any amounts received from the Common School Fund  in fiscal year 2011, and (iii) any reduction in bond proceeds  due to the issuance of discounted bonds, if applicable.  This amount shall include, in addition to the amount certified by the System, an amount necessary to meet employer contributions required by the State as an employer under paragraph (e) of this Section, which may also be used by the System for contributions required by paragraph (a) of Section 16-127.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 subsection (a-1), 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. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007  on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General  Obligation Bond Act, so that, by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.(b-4) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to:(i) for each of fiscal years 2018, 2019,  and 2020,     the defined benefit normal cost of the defined benefit plan, less the employee contribution, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; for fiscal year 2021 and each fiscal year thereafter, the defined benefit normal cost of the defined benefit plan, less the employee contribution, plus 2%, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; plus(ii) the amount required for that fiscal year to     amortize any unfunded actuarial accrued liability associated with the present value of liabilities attributable to the employer's account under Section 16-158.3, determined as a level percentage of payroll over a 30-year rolling amortization period.In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll.In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.The contributions required under this subsection (b-4) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection.(c) Payment of the required State contributions and of all pensions,  retirement annuities, death benefits, refunds, and other benefits granted  under or assumed by this System, and all expenses in connection with the  administration and operation thereof, are obligations of the State.If members are paid from special trust or federal funds which are  administered by the employing unit, whether school district or other  unit, the employing unit shall pay to the System from such  funds the full accruing retirement costs based upon that  service, which, beginning July 1, 2017, shall be at a rate, expressed as a percentage of salary, equal to the total employer's normal cost, expressed as a percentage of payroll, as determined by the System.  Employer contributions, based on  salary paid to members from federal funds, may be forwarded by the distributing  agency of the State of Illinois to the System prior to allocation, in an  amount determined in accordance with guidelines established by such  agency and the System. Any contribution for fiscal year 2015 collected as a result of the change made by Public Act 98-674 shall be considered a State contribution under subsection (b-3) of this Section.(d) Effective July 1, 1986, any employer of a teacher as defined in  paragraph (8) of Section 16-106 shall pay the employer's normal cost  of benefits based upon the teacher's service, in addition to  employee contributions, as determined by the System.  Such employer  contributions shall be forwarded monthly in accordance with guidelines  established by the System.However, with respect to benefits granted under Section 16-133.4 or  16-133.5 to a teacher as defined in paragraph (8) of Section 16-106, the  employer's contribution shall be 12% (rather than 20%) of the member's  highest annual salary rate for each year of creditable service granted, and  the employer shall also pay the required employee contribution on behalf of  the teacher.  For the purposes of Sections 16-133.4 and 16-133.5, a teacher  as defined in paragraph (8) of Section 16-106 who is serving in that capacity  while on leave of absence from another employer under this Article shall not  be considered an employee of the employer from which the teacher is on leave.(e) Beginning July 1, 1998, every employer of a teacher  shall pay to the System an employer contribution computed as follows:(1) Beginning July 1, 1998 through June 30, 1999, the     employer contribution shall be equal to 0.3% of each teacher's salary.(2) Beginning July 1, 1999 and thereafter, the     employer contribution shall be equal to 0.58% of each teacher's salary.  The school district or other employing unit may pay these employer  contributions out of any source of funding available for that purpose and  shall forward the contributions to the System on the schedule established  for the payment of member contributions.These employer contributions are intended to offset a portion of the cost  to the System of the increases in retirement benefits resulting from Public Act 90-582.Each employer of teachers is entitled to a credit against the contributions  required under this subsection (e) with respect to salaries paid to teachers  for the period January 1, 2002 through June 30, 2003, equal to the amount paid  by that employer under subsection (a-5) of Section 6.6 of the State Employees  Group Insurance Act of 1971 with respect to salaries paid to teachers for that  period.The additional 1% employee contribution required under Section 16-152 by Public Act 90-582   is the responsibility of the teacher and not the  teacher's employer, unless the employer agrees, through collective bargaining  or otherwise, to make the contribution on behalf of the teacher.If an employer is required by a contract in effect on May 1, 1998 between the  employer and an employee organization to pay, on behalf of all its full-time  employees  covered by this Article, all mandatory employee contributions required under  this Article, then the employer shall be excused from paying the employer  contribution required under this subsection (e) for the balance of the term  of that contract.  The employer and the employee organization shall jointly  certify to the System the existence of the contractual requirement, in such  form as the System may prescribe.  This exclusion shall cease upon the  termination, extension, or renewal of the contract at any time after May 1,  1998.(f) If the amount of a teacher's salary for any school year used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%.  This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. If a teacher's salary for the 2005-2006 school year is used to determine final average salary under this subsection (f), then the changes made to this subsection (f) by Public Act 94-1057 shall apply in calculating whether the increase in his or her salary is in excess of 6%. For the purposes of this Section, change in employment under Section 10-21.12 of the School Code on or after June 1, 2005 shall constitute a change in employer. The System may require the employer to provide any pertinent information or documentation.  The changes made to this subsection (f) by Public Act 94-1111 apply without regard to whether the teacher was in service on or after its effective date.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment  and bill the employer for that amount.  The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing  for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (g), (g-5), (g-10), or (h) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation,  the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(f-1) (Blank).(g) This subsection (g) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011.  The changes made by Public Act 94-1057 shall not require the System to refund any payments received before  July 31, 2006 (the effective date of Public Act 94-1057).When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to a teacher at a time when the teacher is 10 or more years from retirement eligibility under Section 16-132 or 16-133.2.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload work, including summer school, when the school district has certified to the System, and the System  has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule.When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.When assessing payment for any amount due under subsection (f), the System shall exclude any payment to the teacher from the State of Illinois or the State Board of Education over which the employer does not have discretion, notwithstanding that the payment is included in the computation of final average salary.(g-5) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload or stipend work performed in a school year subsequent to a school year in which the employer was unable to offer or allow to be conducted overload or stipend work due to an emergency declaration limiting such activities.(g-10) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from increased instructional time that exceeded the instructional time required during the 2019-2020 school year.(h) When assessing payment for any amount due under subsection (f), the System shall exclude any salary increase  described in subsection (g) of this Section given on or after  July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (f) of this Section.(i) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:(1) The number of recalculations required by the     changes made to this Section by Public Act 94-1057 for each employer.(2) The dollar amount by which each employer's     contribution to the System was changed due to recalculations required by Public Act 94-1057.(3) The total amount the System received from each     employer as a result of the changes made to this Section by Public Act 94-4.(4) The increase in the required State contribution     resulting from the changes made to this Section by Public Act 94-1057.(i-5) For school years beginning on or after July 1, 2017, if the amount of a participant's salary for any school year exceeds the amount of the salary set for the Governor, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of salary in excess of the amount of the salary set for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(j) 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.(k) 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. (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)(Text of Section from P.A. 102-525)Sec. 16-158. Contributions by State and other employing units.(a) The State shall make contributions to the System by means of  appropriations from the Common School Fund and other State funds of amounts  which, together with other employer contributions, 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.The Board shall determine the amount of State contributions required for  each fiscal year on the basis of the actuarial tables and other assumptions  adopted by the Board and the recommendations of the actuary, using the formula  in subsection (b-3).(a-1) Annually, on or before November 15  until November 15, 2011, the Board shall certify to the  Governor the amount of the required State contribution for the coming fiscal  year.  The certification under this subsection (a-1) shall include a copy of the actuarial recommendations  upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year.On or before May 1, 2004, the Board shall recalculate and recertify to  the Governor the amount of the required State contribution to the System for  State fiscal year 2005, taking into account the amounts appropriated to and  received by the System under subsection (d) of Section 7.2 of the General  Obligation Bond Act.On or before July 1, 2005, the Board shall recalculate and recertify  to the Governor the amount of the required State  contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by Public Act 94-4.On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.(a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-10) By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by Public Act 100-23. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-15)   On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by Public Act 100-587.  The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification.  The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly.  The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.(b) Through State fiscal year 1995, the State contributions shall be  paid to the System in accordance with Section 18-7 of the School Code.(b-1) Beginning in State fiscal year 1996, on the 15th day of each month,  or as soon thereafter as may be practicable, the Board shall submit vouchers  for payment of State contributions to the System, in a total monthly amount of  one-twelfth of the required annual State contribution certified under  subsection (a-1).  From March 5, 2004 (the  effective date of Public Act 93-665)  through June 30, 2004, the Board shall not submit vouchers for the  remainder of fiscal year 2004 in excess of the fiscal year 2004  certified contribution amount determined under this Section  after taking into consideration the transfer to the System  under subsection (a) of Section 6z-61 of the State Finance Act.  These vouchers shall be paid by the State Comptroller and  Treasurer by warrants drawn on the funds appropriated to the System for that  fiscal year.If in any month the amount remaining unexpended from all other appropriations  to the System for the applicable fiscal year (including the appropriations to  the System under Section 8.12 of the State Finance Act and Section 1 of the  State Pension Funds Continuing Appropriation Act) is less than the amount  lawfully vouchered under this subsection, the difference shall be paid from the  Common School Fund under the continuing appropriation authority provided in  Section 1.1 of the State Pension Funds Continuing Appropriation Act.(b-2) Allocations from the Common School Fund apportioned to school  districts not coming under this System shall not be diminished or affected by  the provisions of this Article.(b-3) 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.For each of State fiscal years 2018,  2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161.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 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), and notwithstanding any contrary certification made under  subsection (a-1) before May 27, 1998 (the effective date of Public Act 90-582):  10.02% in FY 1999;  10.77% in FY 2000;  11.47% in FY 2001;  12.16% in FY 2002;  12.86% in FY 2003; and  13.56% in FY 2004.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2006 is $534,627,700.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2007 is $738,014,500.For each of State fiscal years 2008 through 2009, the State contribution to  the System, as a percentage of the applicable employee payroll, shall be  increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $2,089,268,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.Notwithstanding any other provision of this Article, the  total required State contribution for State fiscal year 2011 is  the amount recertified by the System on or before April 1, 2011 pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds  sold in fiscal year 2011 pursuant to Section 7.2 of the General  Obligation Bond Act, less (i) the pro rata share of bond sale  expenses determined by the System's share of total bond  proceeds, (ii) any amounts received from the Common School Fund  in fiscal year 2011, and (iii) any reduction in bond proceeds  due to the issuance of discounted bonds, if applicable.  This amount shall include, in addition to the amount certified by the System, an amount necessary to meet employer contributions required by the State as an employer under paragraph (e) of this Section, which may also be used by the System for contributions required by paragraph (a) of Section 16-127.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 subsection (a-1), 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. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007  on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General  Obligation Bond Act, so that, by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.(b-4) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to:(i) for each of fiscal years 2018, 2019,  and 2020,     the defined benefit normal cost of the defined benefit plan, less the employee contribution, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; for fiscal year 2021 and each fiscal year thereafter, the defined benefit normal cost of the defined benefit plan, less the employee contribution, plus 2%, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; plus(ii) the amount required for that fiscal year to     amortize any unfunded actuarial accrued liability associated with the present value of liabilities attributable to the employer's account under Section 16-158.3, determined as a level percentage of payroll over a 30-year rolling amortization period.In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll.In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.The contributions required under this subsection (b-4) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection.(c) Payment of the required State contributions and of all pensions,  retirement annuities, death benefits, refunds, and other benefits granted  under or assumed by this System, and all expenses in connection with the  administration and operation thereof, are obligations of the State.If members are paid from special trust or federal funds which are  administered by the employing unit, whether school district or other  unit, the employing unit shall pay to the System from such  funds the full accruing retirement costs based upon that  service, which, beginning July 1, 2017, shall be at a rate, expressed as a percentage of salary, equal to the total employer's normal cost, expressed as a percentage of payroll, as determined by the System.  Employer contributions, based on  salary paid to members from federal funds, may be forwarded by the distributing  agency of the State of Illinois to the System prior to allocation, in an  amount determined in accordance with guidelines established by such  agency and the System. Any contribution for fiscal year 2015 collected as a result of the change made by Public Act 98-674 shall be considered a State contribution under subsection (b-3) of this Section.(d) Effective July 1, 1986, any employer of a teacher as defined in  paragraph (8) of Section 16-106 shall pay the employer's normal cost  of benefits based upon the teacher's service, in addition to  employee contributions, as determined by the System.  Such employer  contributions shall be forwarded monthly in accordance with guidelines  established by the System.However, with respect to benefits granted under Section 16-133.4 or  16-133.5 to a teacher as defined in paragraph (8) of Section 16-106, the  employer's contribution shall be 12% (rather than 20%) of the member's  highest annual salary rate for each year of creditable service granted, and  the employer shall also pay the required employee contribution on behalf of  the teacher.  For the purposes of Sections 16-133.4 and 16-133.5, a teacher  as defined in paragraph (8) of Section 16-106 who is serving in that capacity  while on leave of absence from another employer under this Article shall not  be considered an employee of the employer from which the teacher is on leave.(e) Beginning July 1, 1998, every employer of a teacher  shall pay to the System an employer contribution computed as follows:(1) Beginning July 1, 1998 through June 30, 1999, the     employer contribution shall be equal to 0.3% of each teacher's salary.(2) Beginning July 1, 1999 and thereafter, the     employer contribution shall be equal to 0.58% of each teacher's salary.  The school district or other employing unit may pay these employer  contributions out of any source of funding available for that purpose and  shall forward the contributions to the System on the schedule established  for the payment of member contributions.These employer contributions are intended to offset a portion of the cost  to the System of the increases in retirement benefits resulting from Public Act 90-582.Each employer of teachers is entitled to a credit against the contributions  required under this subsection (e) with respect to salaries paid to teachers  for the period January 1, 2002 through June 30, 2003, equal to the amount paid  by that employer under subsection (a-5) of Section 6.6 of the State Employees  Group Insurance Act of 1971 with respect to salaries paid to teachers for that  period.The additional 1% employee contribution required under Section 16-152 by Public Act 90-582   is the responsibility of the teacher and not the  teacher's employer, unless the employer agrees, through collective bargaining  or otherwise, to make the contribution on behalf of the teacher.If an employer is required by a contract in effect on May 1, 1998 between the  employer and an employee organization to pay, on behalf of all its full-time  employees  covered by this Article, all mandatory employee contributions required under  this Article, then the employer shall be excused from paying the employer  contribution required under this subsection (e) for the balance of the term  of that contract.  The employer and the employee organization shall jointly  certify to the System the existence of the contractual requirement, in such  form as the System may prescribe.  This exclusion shall cease upon the  termination, extension, or renewal of the contract at any time after May 1,  1998.(f) If the amount of a teacher's salary for any school year used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%.  This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. If a teacher's salary for the 2005-2006 school year is used to determine final average salary under this subsection (f), then the changes made to this subsection (f) by Public Act 94-1057 shall apply in calculating whether the increase in his or her salary is in excess of 6%. For the purposes of this Section, change in employment under Section 10-21.12 of the School Code on or after June 1, 2005 shall constitute a change in employer. The System may require the employer to provide any pertinent information or documentation.  The changes made to this subsection (f) by Public Act 94-1111 apply without regard to whether the teacher was in service on or after its effective date.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment  and bill the employer for that amount.  The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing  for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (g), (g-5), or (h) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation,  the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(f-1) (Blank).(g) This subsection (g) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011.  The changes made by Public Act 94-1057 shall not require the System to refund any payments received before  July 31, 2006 (the effective date of Public Act 94-1057).When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to a teacher at a time when the teacher is 10 or more years from retirement eligibility under Section 16-132 or 16-133.2.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload work, including summer school, when the school district has certified to the System, and the System  has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule.When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.When assessing payment for any amount due under subsection (f), the System shall exclude any payment to the teacher from the State of Illinois or the State Board of Education over which the employer does not have discretion, notwithstanding that the payment is included in the computation of final average salary.(g-5) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from  teaching summer school on or after May 1, 2021 and before September 15, 2022.(h) When assessing payment for any amount due under subsection (f), the System shall exclude any salary increase  described in subsection (g) of this Section given on or after  July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (f) of this Section.(i) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:(1) The number of recalculations required by the     changes made to this Section by Public Act 94-1057 for each employer.(2) The dollar amount by which each employer's     contribution to the System was changed due to recalculations required by Public Act 94-1057.(3) The total amount the System received from each     employer as a result of the changes made to this Section by Public Act 94-4.(4) The increase in the required State contribution     resulting from the changes made to this Section by Public Act 94-1057.(i-5) For school years beginning on or after July 1, 2017, if the amount of a participant's salary for any school year exceeds the amount of the salary set for the Governor, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of salary in excess of the amount of the salary set for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(j) 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.(k) 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. (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 102-525, eff. 8-20-21.)(Text of Section from P.A. 102-558)Sec. 16-158. Contributions by State and other employing units.(a) The State shall make contributions to the System by means of  appropriations from the Common School Fund and other State funds of amounts  which, together with other employer contributions, 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.The Board shall determine the amount of State contributions required for  each fiscal year on the basis of the actuarial tables and other assumptions  adopted by the Board and the recommendations of the actuary, using the formula  in subsection (b-3).(a-1) Annually, on or before November 15  until November 15, 2011, the Board shall certify to the  Governor the amount of the required State contribution for the coming fiscal  year.  The certification under this subsection (a-1) shall include a copy of the actuarial recommendations  upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year.On or before May 1, 2004, the Board shall recalculate and recertify to  the Governor the amount of the required State contribution to the System for  State fiscal year 2005, taking into account the amounts appropriated to and  received by the System under subsection (d) of Section 7.2 of the General  Obligation Bond Act.On or before July 1, 2005, the Board shall recalculate and recertify  to the Governor the amount of the required State  contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by Public Act 94-4.On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.(a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-10) By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by Public Act 100-23. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.(a-15)   On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by Public Act 100-587.  The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification.  The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly.  The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.(b) Through State fiscal year 1995, the State contributions shall be  paid to the System in accordance with Section 18-7 of the School Code.(b-1) Beginning in State fiscal year 1996, on the 15th day of each month,  or as soon thereafter as may be practicable, the Board shall submit vouchers  for payment of State contributions to the System, in a total monthly amount of  one-twelfth of the required annual State contribution certified under  subsection (a-1).  From March 5, 2004 (the  effective date of Public Act 93-665)  through June 30, 2004, the Board shall not submit vouchers for the  remainder of fiscal year 2004 in excess of the fiscal year 2004  certified contribution amount determined under this Section  after taking into consideration the transfer to the System  under subsection (a) of Section 6z-61 of the State Finance Act.  These vouchers shall be paid by the State Comptroller and  Treasurer by warrants drawn on the funds appropriated to the System for that  fiscal year.If in any month the amount remaining unexpended from all other appropriations  to the System for the applicable fiscal year (including the appropriations to  the System under Section 8.12 of the State Finance Act and Section 1 of the  State Pension Funds Continuing Appropriation Act) is less than the amount  lawfully vouchered under this subsection, the difference shall be paid from the  Common School Fund under the continuing appropriation authority provided in  Section 1.1 of the State Pension Funds Continuing Appropriation Act.(b-2) Allocations from the Common School Fund apportioned to school  districts not coming under this System shall not be diminished or affected by  the provisions of this Article.(b-3) 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.For each of State fiscal years 2018,  2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161.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 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), and notwithstanding any contrary certification made under  subsection (a-1) before May 27, 1998 (the effective date of Public Act 90-582):  10.02% in FY 1999;  10.77% in FY 2000;  11.47% in FY 2001;  12.16% in FY 2002;  12.86% in FY 2003; and  13.56% in FY 2004.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2006 is $534,627,700.Notwithstanding any other provision of this Article, the total required State  contribution for State fiscal year 2007 is $738,014,500.For each of State fiscal years 2008 through 2009, the State contribution to  the System, as a percentage of the applicable employee payroll, shall be  increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $2,089,268,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.Notwithstanding any other provision of this Article, the  total required State contribution for State fiscal year 2011 is  the amount recertified by the System on or before April 1, 2011 pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds  sold in fiscal year 2011 pursuant to Section 7.2 of the General  Obligation Bond Act, less (i) the pro rata share of bond sale  expenses determined by the System's share of total bond  proceeds, (ii) any amounts received from the Common School Fund  in fiscal year 2011, and (iii) any reduction in bond proceeds  due to the issuance of discounted bonds, if applicable.  This amount shall include, in addition to the amount certified by the System, an amount necessary to meet employer contributions required by the State as an employer under paragraph (e) of this Section, which may also be used by the System for contributions required by paragraph (a) of Section 16-127.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 subsection (a-1), 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. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007  on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General  Obligation Bond Act, so that, by State fiscal year 2011, the  State is contributing at the rate otherwise required under this Section.(b-4) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to:(i) for each of fiscal years 2018, 2019,  and 2020,     the defined benefit normal cost of the defined benefit plan, less the employee contribution, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; for fiscal year 2021 and each fiscal year thereafter, the defined benefit normal cost of the defined benefit plan, less the employee contribution, plus 2%, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (b) of Section 1-161; plus(ii) the amount required for that fiscal year to     amortize any unfunded actuarial accrued liability associated with the present value of liabilities attributable to the employer's account under Section 16-158.3, determined as a level percentage of payroll over a 30-year rolling amortization period.In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll.In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.The contributions required under this subsection (b-4) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection.(c) Payment of the required State contributions and of all pensions,  retirement annuities, death benefits, refunds, and other benefits granted  under or assumed by this System, and all expenses in connection with the  administration and operation thereof, are obligations of the State.If members are paid from special trust or federal funds which are  administered by the employing unit, whether school district or other  unit, the employing unit shall pay to the System from such  funds the full accruing retirement costs based upon that  service, which, beginning July 1, 2017, shall be at a rate, expressed as a percentage of salary, equal to the total employer's normal cost, expressed as a percentage of payroll, as determined by the System.  Employer contributions, based on  salary paid to members from federal funds, may be forwarded by the distributing  agency of the State of Illinois to the System prior to allocation, in an  amount determined in accordance with guidelines established by such  agency and the System. Any contribution for fiscal year 2015 collected as a result of the change made by Public Act 98-674 shall be considered a State contribution under subsection (b-3) of this Section.(d) Effective July 1, 1986, any employer of a teacher as defined in  paragraph (8) of Section 16-106 shall pay the employer's normal cost  of benefits based upon the teacher's service, in addition to  employee contributions, as determined by the System.  Such employer  contributions shall be forwarded monthly in accordance with guidelines  established by the System.However, with respect to benefits granted under Section 16-133.4 or  16-133.5 to a teacher as defined in paragraph (8) of Section 16-106, the  employer's contribution shall be 12% (rather than 20%) of the member's  highest annual salary rate for each year of creditable service granted, and  the employer shall also pay the required employee contribution on behalf of  the teacher.  For the purposes of Sections 16-133.4 and 16-133.5, a teacher  as defined in paragraph (8) of Section 16-106 who is serving in that capacity  while on leave of absence from another employer under this Article shall not  be considered an employee of the employer from which the teacher is on leave.(e) Beginning July 1, 1998, every employer of a teacher  shall pay to the System an employer contribution computed as follows:(1) Beginning July 1, 1998 through June 30, 1999, the     employer contribution shall be equal to 0.3% of each teacher's salary.(2) Beginning July 1, 1999 and thereafter, the     employer contribution shall be equal to 0.58% of each teacher's salary.  The school district or other employing unit may pay these employer  contributions out of any source of funding available for that purpose and  shall forward the contributions to the System on the schedule established  for the payment of member contributions.These employer contributions are intended to offset a portion of the cost  to the System of the increases in retirement benefits resulting from Public Act 90-582.Each employer of teachers is entitled to a credit against the contributions  required under this subsection (e) with respect to salaries paid to teachers  for the period January 1, 2002 through June 30, 2003, equal to the amount paid  by that employer under subsection (a-5) of Section 6.6 of the State Employees  Group Insurance Act of 1971 with respect to salaries paid to teachers for that  period.The additional 1% employee contribution required under Section 16-152 by Public Act 90-582   is the responsibility of the teacher and not the  teacher's employer, unless the employer agrees, through collective bargaining  or otherwise, to make the contribution on behalf of the teacher.If an employer is required by a contract in effect on May 1, 1998 between the  employer and an employee organization to pay, on behalf of all its full-time  employees  covered by this Article, all mandatory employee contributions required under  this Article, then the employer shall be excused from paying the employer  contribution required under this subsection (e) for the balance of the term  of that contract.  The employer and the employee organization shall jointly  certify to the System the existence of the contractual requirement, in such  form as the System may prescribe.  This exclusion shall cease upon the  termination, extension, or renewal of the contract at any time after May 1,  1998.(f) If the amount of a teacher's salary for any school year used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%.  This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. If a teacher's salary for the 2005-2006 school year is used to determine final average salary under this subsection (f), then the changes made to this subsection (f) by Public Act 94-1057 shall apply in calculating whether the increase in his or her salary is in excess of 6%. For the purposes of this Section, change in employment under Section 10-21.12 of the School Code on or after June 1, 2005 shall constitute a change in employer. The System may require the employer to provide any pertinent information or documentation.  The changes made to this subsection (f) by Public Act 94-1111 apply without regard to whether the teacher was in service on or after its effective date.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment  and bill the employer for that amount.  The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing  for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (g) or (h) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation,  the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(f-1) (Blank).(g) This subsection (g) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011.  The changes made by Public Act 94-1057 shall not require the System to refund any payments received before  July 31, 2006 (the effective date of Public Act 94-1057).When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to a teacher at a time when the teacher is 10 or more years from retirement eligibility under Section 16-132 or 16-133.2.When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload work, including summer school, when the school district has certified to the System, and the System  has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule.When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.When assessing payment for any amount due under subsection (f), the System shall exclude any payment to the teacher from the State of Illinois or the State Board of Education over which the employer does not have discretion, notwithstanding that the payment is included in the computation of final average salary.(h) When assessing payment for any amount due under subsection (f), the System shall exclude any salary increase  described in subsection (g) of this Section given on or after  July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (f) of this Section.(i) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:(1) The number of recalculations required by the     changes made to this Section by Public Act 94-1057 for each employer.(2) The dollar amount by which each employer's     contribution to the System was changed due to recalculations required by Public Act 94-1057.(3) The total amount the System received from each     employer as a result of the changes made to this Section by Public Act 94-4.(4) The increase in the required State contribution     resulting from the changes made to this Section by Public Act 94-1057.(i-5) For school years beginning on or after July 1, 2017, if the amount of a participant's salary for any school year exceeds the amount of the salary set for the Governor, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of salary in excess of the amount of the salary set for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation.Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.(j) 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.(k) 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. (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 102-558, eff. 8-20-21.)