August 14, 2015

To the Honorable Members of

The Illinois House of Representatives,

99th General Assembly:

Today I veto House Bill 3757 from the 99th General Assembly, which would amend the Illinois Pension Code and could impose higher costs and more mandates on municipalities and other local governments that participate in the Illinois Municipal Retirement Fund.

House Bill 3757 would make local government employers responsible for determining whether to suspend annuitants’ Illinois Municipal Retirement Fund benefits if they return to work. As the penalty for failing to conduct this determination and notify the Fund’s Board of Trustees, local governments may become liable for the entire amount of retirement annuity payments that should have been suspended.

At a time when local governments in Illinois are struggling to make ends meet, we should not be saddling them with additional burdens. To be sure, the issue of overpaying retirement benefits is serious and should be addressed. But it must be addressed by the Fund and the participating local governments working together. Only then can we fashion a proper solution that prevents overpayment without imposing undue burdens on local governments.

Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 3757 entitled “AN ACT concerning public employee benefits”, with the foregoing objections, vetoed in its entirety.

Sincerely,

Bruce Rauner

GOVERNOR