Bill Status of HB 3066   98th General Assembly

Short Description:  PENCD-TRS & SURS-SMPS

House Sponsors
Rep. Mike Fortner-Michael W. Tryon-Sandra M. Pihos

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 5/15-111from 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
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 State Universities and Downstate Teachers Articles of the Illinois Pension Code. Requires the Teachers' Retirement System to establish and maintain a self-managed plan. 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)
 CGFA’s actuary produced a cost estimate in 2012 detailing the effects of a Self-Managed Plan within SERS 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, 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 SURS and TRS. 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%.

House Committee Amendment No. 1
Deletes reference to:
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
Adds reference to:
40 ILCS 5/15-101from Ch. 108 1/2, par. 15-101
40 ILCS 5/15-103from Ch. 108 1/2, par. 15-103
40 ILCS 5/15-155.1 new
40 ILCS 5/15-159.1 new
40 ILCS 5/15-165.1 new
40 ILCS 5/16-101
40 ILCS 5/17-101

Replaces everything after the enacting clause. Amends the Budget Stabilization Act. Makes changes concerning transfers from the General Revenue Fund to the Pension Stabilization Fund. Amends the State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Consolidates those 3 systems into a single retirement system, to be known as the Illinois Teachers' Retirement Fund. Creates a new Board for the Fund. Makes some other conforming changes. 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 from the State to the actual employer. Authorizes actions to enforce payments by employers. 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.

Actions 
DateChamber Action
  2/26/2013HouseFiled with the Clerk by Rep. Mike Fortner
  2/26/2013HouseAdded Chief Co-Sponsor Rep. Michael W. Tryon
  2/26/2013HouseFirst Reading
  2/26/2013HouseReferred to Rules Committee
  3/7/2013HouseAssigned to Personnel and Pensions Committee
  3/13/2013HousePension Note Filed
  3/19/2013HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Mike Fortner
  3/19/2013HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  3/20/2013HouseHouse Committee Amendment No. 1 Rules Refers to Personnel and Pensions Committee
  3/21/2013HouseHouse Committee Amendment No. 1 Adopted in Personnel and Pensions Committee; by Voice Vote
  3/21/2013HouseRemains in Personnel and Pensions Committee
  3/22/2013HouseRule 19(a) / Re-referred to Rules Committee
  8/1/2013HouseAdded Chief Co-Sponsor Rep. Sandra M. Pihos
  12/3/2014HouseSession Sine Die

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