90th General Assembly
Summary of HB0110
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House Sponsors:
POE-KLINGLER-HANNIG-PHELPS-JONES,JOHN, WOOLARD, GRANBERG, 
   BOST, WINKEL, MYERS, WIRSING, BRADY, RUTHERFORD, BLACK, 
   NOLAND, BEAUBIEN, STEPHENS, MOFFITT, MEYER, MURPHY, 
   MITCHELL, LAWFER, HOEFT, TURNER,JOHN, WAIT AND DURKIN.

Senate Sponsors:
BOMKE-MYERS,J-MAITLAND-MADIGAN,R-DEMUZIO

Short description: 
PUBLIC EMPL PENSION EQUITY ACT                                             

Synopsis of Bill as introduced:
        Creates the Public Employee Pension Equity  Act.   Contains  only      
   the short title.                                                            
          PENSION IMPACT NOTE                                                  
          No fiscal impact at this time.                                       
          PENSION IMPACT NOTE, ENGROSSED                                       
          No change from previous note.                                        
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          5 ILCS 375/3                    from Ch. 127, par. 523               
          5 ILCS 375/10                   from Ch. 127, par. 530               
          30 ILCS 105/14a                 from Ch. 127, par. 150a              
          40 ILCS 5/14-103.12             from Ch. 108 1/2, par. 14-103.1      
          40 ILCS 5/14-108                from Ch. 108 1/2, par. 14-108        
          40 ILCS 5/14-131                from Ch. 108 1/2, par. 14-131        
          40 ILCS 5/15-134                from Ch. 108 1/2, par. 15-134        
          40 ILCS 5/15-135                from Ch. 108 1/2, par. 15-135        
          40 ILCS 5/15-136                from Ch. 108 1/2, par. 15-136        
        Replaces everything.  Amends the State Employee  Article  of  the      
   Pension Code to provide for a new retirement formula of 1.67% per year      
   of  service  for  regular  coordinated  members  and  2.2% per year of      
   service for regular noncoordinated members. Also  allows  persons  who      
   retire  under  the  alternative  (State  police) formula to have their      
   benefits based on last-day salary  rather  than  a  48-month  average.      
   Increases  the  required  State  contribution to the System through FY      
   2011.  Amends the State Universities Article of the  Pension  Code  to      
   provide  for  a  new  retirement  formula of 2.2% per year of service.      
   Increases the maximum retirement annuity from 75% to 80% of the  final      
   rate  of earnings.  For persons who retire after 1997 and before 2003,      
   allows retirement at any  age  with  a  specified  amount  of  service      
   (between 30 and 35 years).  Amends the State Employees Group Insurance      
   Act  of  1971  to require that certain new annuitants and survivors of      
   the State Employees' Retirement  System  and  the  State  Universities      
   Retirement  System  make  contributions toward the cost of their basic      
   group health insurance.  Requires the Executive Secretary of  SERS  to      
   verify  health care premiums.  Amends the State Finance Act to provide      
   that State employees shall not be entitled to compensation for  unused      
   sick  leave  accumulated  on  or  after  January  1,  1998.  Effective      
   immediately.                                                                
        SENATE AMENDMENT NO. 3.                                                
        Changes language relating to review of State employee group            
   health plan premiums by the Executive Secretary of the State                
   Employees' Retirement System.                                               
        SENATE AMENDMENT NO. 4.                                                
          Adds reference to:                                                   
          40 ILCS 5/15-112                from Ch. 108 1/2, par. 15-112        
          40 ILCS 5/15-113.2              from Ch. 108 1/2, par. 15-113.2      
          40 ILCS 5/15-113.3              from Ch. 108 1/2, par. 15-113.3      
          40 ILCS 5/15-113.4              from Ch. 108 1/2, par. 15-113.4      
          40 ILCS 5/15-113.5              from Ch. 108 1/2, par. 15-113.5      
          40 ILCS 5/15-113.7              from Ch. 108 1/2, par. 15-113.7      
          40 ILCS 5/15-125                from Ch. 108 1/2, par. 15-125        
          40 ILCS 5/15-136.2              from Ch. 108 1/2, par. 15-136.2      
          40 ILCS 5/15-143                from Ch. 108 1/2, par. 15-143        
          40 ILCS 5/15-153.2              from Ch. 108 1/2, par. 15-153.2      
          40 ILCS 5/15-157                from Ch. 108 1/2, par. 15-157        
          40 ILCS 5/15-167.2              from Ch. 108 1/2, par. 15-167.2      
          40 ILCS 5/15-168.1 new                                               
          40 ILCS 5/15-185                from Ch. 108 1/2, par. 15-185        
          40 ILCS 5/15-190                from Ch. 108 1/2, par. 15-190        
          40 ILCS 5/15-191                from Ch. 108 1/2, par. 15-191        
        Amends the  State  Universities  Article  of  the  Pension  Code.      
   Increases  the  System's  authority  to  issue  bonds,  allowing up to      
   $20,000,000 to be  outstanding  at  any  one  time.   Limits  existing      
   benefits  by:  (i) excluding certain earnings after June 30, 1997 from      
   the  calculation  of  the  final  rate  of  earnings;  (ii)   imposing      
   additional  requirements  on  return  to  service following a leave of      
   absence; (iii) requiring a return to service  within  one  year  after      
   discharge  in  order  to  obtain  credit  for  military  service; (iv)      
   removing a provision allowing beneficiaries to elect to receive  death      
   benefits in multiple payments; and (v) limiting credit for unused sick      
   leave.   (Article  13,  Section  5  of  the  Illinois Constitution may      
   prevent these limitations from applying to certain current  or  former      
   members.)   Changes  the definition of "effective rate of interest" by      
   adding additional factors to be  included  in  determining  the  rate,      
   including  the  desirability of minimizing volatility in the rate from      
   year to year; states that the change is a  clarification  of  existing      
   law.   Changes provisions relating to the calculation of interest when      
   purchasing military service credit.  Grants the Secretary of the Board      
   the power to issue subpoenas.  Allows annuitants and beneficiaries  to      
   authorize  withholding  from their annuities and benefits.  Allows the      
   System to pay benefits to the trustee  of  a  trust  created  for  the      
   benefit of a minor or person under legal disability; provides that the      
   System  is  not  responsible for determining the validity of the trust      
   and must conclusively rely on  the  representations  of  the  trustee.      
   Extends   the  deadline  for  early  retirement  without  discount  to      
   September  1,  2002.    Allows  a  person  formerly  employed  by  the      
   University of Illinois athletic association to become  a  participant.      
   Also makes technical changes.                                               
 
Last action on Bill: PUBLIC ACT.............................. 90-0065

   Last action date: 97-07-07

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   3


   END OF INQUIRY 
                                                                               



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