IL SB2517

Beginning in fiscal year 2020, the Downstate Teachers Retirement System must calculate the projected increase in employer normal cost of benefits resulting from salary increases, expressed separately for Tier 1 and Tier 2 benefits.

For school years beginning July 1, 2019 and thereafter, employers must pay to the System the projected increase in employer normal cost resulting from any salary increase exceeding the prior year amount, except for teachers hired after the implementation date.

Excludes from this requirement salary increases paid under contracts or collective bargaining agreements entered into, amended, or renewed before the bill's effective date, and salary increases for teachers hired after the implementation date.

Defines "Tier 1 benefits" as benefits for members who became members before January 1, 2011, and "Tier 2 benefits" as benefits for members who became members January 1, 2011 or later.

Amends the State Mandates Act to require implementation of these employer contribution provisions without State reimbursement to local school districts.