Bill Status of HB 2365   98th General Assembly

Short Description:  PEN CD-SELF-MANAGED PLANS

House Sponsors
Rep. Mike Fortner-Linda Chapa LaVia-Dennis M. Reboletti-Sandra M. Pihos-Michael W. Tryon, David Harris, Ron Sandack, David R. Leitch, Robert W. Pritchard, Joe Sosnowski and Raymond Poe

Last Action  View All Actions

DateChamber Action
  12/3/2014HouseSession Sine Die

Statutes Amended In Order of Appearance
30 ILCS 122/20
30 ILCS 122/25
40 ILCS 5/2-103.1 new
40 ILCS 5/2-103.2 new
40 ILCS 5/2-108.2 new
40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
40 ILCS 5/2-126.2 new
40 ILCS 5/2-134.1 new
40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
40 ILCS 5/14-103.12a new
40 ILCS 5/14-103.40 new
40 ILCS 5/14-103.41 new
40 ILCS 5/14-131
40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
40 ILCS 5/14-133.2 new
40 ILCS 5/14-135.08a new
40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
40 ILCS 5/15-112.1 new
40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
40 ILCS 5/15-158.2
40 ILCS 5/15-165.1 new
40 ILCS 5/16-121from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-121.1 new
40 ILCS 5/16-122.2 new
40 ILCS 5/16-122.3 new
40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
40 ILCS 5/16-158.2 new
40 ILCS 5/16-181.4 new
40 ILCS 5/18-111.1 new
40 ILCS 5/18-118.1 new
40 ILCS 5/18-118.2 new
40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
40 ILCS 5/18-133from Ch. 108 1/2, par. 18-133
40 ILCS 5/18-133.2 new
40 ILCS 5/18-140.1 new
30 ILCS 805/8.37 new

Synopsis As Introduced
Amends the Budget Stabilization Act. Makes changes concerning transfers from the General Revenue Fund to the Pension Stabilization Fund. Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Requires each State-funded retirement system that does not already have a self-managed plan to establish and maintain one. Authorizes participants to irrevocably elect to participate in such a plan. Provides that, for the purpose of calculating traditional benefit package benefits and contributions, the annual salary of a participant may not, except under certain circumstances, exceed certain limits. Requires participation in the self-managed plan to the extent that a participant's salary exceeds the salary cap. Revises the schedule of contributions for participants. Shifts a portion of the employer contributions for downstate teachers and university employees from the State to the actual employer. Authorizes the boards of trustees of each of these retirement systems to triennially recalculate the normal cost of benefit plans that they offer. Defines "traditional benefit package" and "self-managed plan". Changes the formula for calculating the minimum required State contribution to these systems. Provides that the State is contractually obligated to pay the annual required State contribution to these retirement systems. Contains provisions requiring these retirement systems to bring a mandamus action to compel payment of the required State contribution. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

 Pension Note (Government Forecasting & Accountability)
 HB 2365 is substantially similar to HB 6204, also proposed by Rep. Fortner, from the 97th GA. The Commission's actuary produced a cost estimate detailing the effects of the implementation of a Self-Managed Plan within the State Employees Retirement System and the effects of changing the employee contribution rates across all Systems. CGFA’s actuary assumed 10% of SERS’s members would opt-into the Self-Managed Plan and found that the State’s contribution would be reduced by $102 million, or 2.41% of payroll. Additionally, he found that the accrued liabilities for SERS would be reduced by $1.16 billion, the majority of which can be attributed to active members transferring into the Self-Managed Plan. A revised cost study would be required to determine the effect of implementing an identical Self-Managed Plan, as well as the adjusted employee contribution rates within GARS, SURS, TRS, and JRS. An additional cost study would also be required to determine the effect of shifting the long-term, actuarially-based funding schedule goal from 90% up to 100%.

Actions 
DateChamber Action
  2/19/2013HouseFiled with the Clerk by Rep. Mike Fortner
  2/19/2013HouseFirst Reading
  2/19/2013HouseReferred to Rules Committee
  2/21/2013HouseAdded Chief Co-Sponsor Rep. Linda Chapa LaVia
  2/21/2013HouseAdded Chief Co-Sponsor Rep. Dennis M. Reboletti
  2/25/2013HouseAssigned to Personnel and Pensions Committee
  2/26/2013HouseAdded Chief Co-Sponsor Rep. Sandra M. Pihos
  2/28/2013HouseAdded Co-Sponsor Rep. David Harris
  2/28/2013HouseAdded Co-Sponsor Rep. Ron Sandack
  2/28/2013HouseAdded Co-Sponsor Rep. David R. Leitch
  2/28/2013HouseAdded Co-Sponsor Rep. Robert W. Pritchard
  2/28/2013HouseAdded Co-Sponsor Rep. Michael W. Tryon
  2/28/2013HouseAdded Co-Sponsor Rep. Joe Sosnowski
  2/28/2013HouseAdded Chief Co-Sponsor Rep. Michael W. Tryon
  2/28/2013HouseRemoved Co-Sponsor Rep. Michael W. Tryon
  3/6/2013HousePension Note Filed
  3/13/2013HouseAdded Co-Sponsor Rep. Raymond Poe
  3/22/2013HouseRule 19(a) / Re-referred to Rules Committee
  12/3/2014HouseSession Sine Die

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