Replaces everything after the enacting clause. Amends the Budget Stabilization Act. Creates the Pension Stabilization Fund, to be used solely for making payments to the 5 State-funded retirement systems to reduce their unfunded liabilities. Provides for transfers of money into that Fund from the General Revenue Fund in the same amounts and in the same manner as transfers are made into the Budget Stabilization Fund. Provides that all money deposited into the Pension Stabilization Fund shall be promptly apportioned and distributed by the State Comptroller to the 5 State-funded retirement systems, in proportion to their respective actuarial reserve deficiencies, as determined by the Governor's Office of Management and Budget. Amends the Illinois Pension Code. Provides that amounts received from the Pension Stabilization Fund do not reduce and do not constitute payment of any portion of the required minimum State contribution, and shall not be used in computing required State contributions in future years until the system becomes at least 90% funded. Amends the State Pension Funds Continuing Appropriation Act to provide for the continuing appropriation of the amounts to be distributed from the Fund. Amends the State Finance Act. Adds the new Fund to the list of special funds and exempts it from transfers under Section 8h. Effective July 1, 2006.
Pension Note (H-AM 1,2)(Comm on Gov't Forecasting & Account)
According to the Commission's FY 2007 Revenue Forecast, general funds revenues are expected to grow by 2.7% over estimated FY 2006 receipts. Therefore, no transfer of funds to the Pension Stabilization Fund would occur in FY 2007. The changes in funding provisions would require an additional $600-$900 million pension contribution for FY 2007 over the current statutorily-defined funding requirement.
State Debt Impact Note (H-AM 1,2)(Comm on Gov't Forecasting & Account)
HB 1815 (H-AM 1,2) would not change the amount of authorization for any type of State-issued or State-supported bond, and therefore, would not affect the level of indebtedness
State Mandates Fiscal Note (H-AM 1 & 2)(Dept of Commerce & Econ Opportunity)
This legislation does not create a State mandate under the State Mandates Act.
Fiscal Note (H-AM ) (Gov. Office of Management & Budget)
The Governor's Office of Management and Budget estimates that this bill, if enacted into law, will not have a fiscal impact to the State. In the event that estimated general fund revenues exceed expenditures by the value set forth in the Budget Stabilization Act, a transfer would be required that would impact the fiscal condition of the State. However, the Governor's Office of Management and Budget does not estimate that revenue conditions will impact this Act in fiscal year 2007.
Fiscal Note (H-AM 2) (Gov. Office of Management & Budget)
Approximately $1 Billion in additional costs to the State in fiscal year 2007, and increasing amounts in future fiscal years.