SC0017 97TH GENERAL ASSEMBLY

LRB097 06141 JDS 46215 e

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SENATE JOINT RESOLUTION
CONSTITUTIONAL AMENDMENT
SC0017

Introduced 2/10/2011, by Sen. Bill Brady

SYNOPSIS AS INTRODUCED:

ILCON Art. XIII, Sec. 5

Proposes to amend the General Provisions Article of the Illinois Constitution. Provides that a new benefit increase shall not take effect unless, within 60 calendar days after the effective date of the Public Act creating that new benefit increase, the Auditor General certifies (i) that each State-funded pension or retirement system was at least 90% funded as of the date of the annual actuarial valuation occurring immediately before the effective date of the Public Act creating the new benefit increase and that each system has received any required State contributions that came due between the date of that valuation and the effective date of the Public Act creating the new benefit increase or (ii) that enactment of the new benefit increase is required to maintain a State-funded system's qualified plan status. Defines "new benefit increase" and "State-funded pension or retirement system". Effective upon being declared adopted in accordance with Section 7 of the Illinois Constitutional Amendment Act.

SENATE JOINT RESOLUTION

CONSTITUTIONAL AMENDMENT

RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN, that there shall be submitted to the electors of the State for adoption or rejection at the general election next occurring at least 6 months after the adoption of this resolution a proposition to amend Section 5 of Article XIII of the Illinois Constitution as follows:

(ILCON Art. XIII, Sec. 5)

SECTION 5. PENSION AND RETIREMENT SYSTEMS RIGHTS

(a) Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

(b) A new benefit increase shall not take effect unless, within 60 calendar days after the effective date of the Public Act creating that new benefit increase, the Auditor General certifies (i) that each State-funded pension or retirement system was at least 90% funded as of the date of the annual actuarial valuation occurring immediately before the effective date of the Public Act creating the new benefit increase and that each system has received any required State contributions that came due between the date of that valuation and the effective date of the Public Act creating the new benefit increase or (ii) that enactment of the new benefit increase is required to maintain a State-funded system's qualified plan status.

For the purposes of this subsection (b):

"New benefit increase" means any increase in the amount of a benefit provided by a State-funded pension or retirement system, or any expansion in the conditions of eligibility for such a benefit, that results from enactment of a Public Act that takes effect after the effective date of this subsection (b).

"State-funded pension or retirement system" means the pension and retirement systems created under Articles 2, 14, 15, 16, and 18 of the Illinois Pension Code or any successors to those systems.

This subsection (b) applies notwithstanding any provision to the contrary in either subsection (a) of this Section or Article IV.

(Source: Illinois Constitution.)

SCHEDULE

This Constitutional Amendment takes effect upon being declared adopted in accordance with Section 7 of the Illinois Constitutional Amendment Act.