Illinois General Assembly - Bill Status for SB0011

Amends the General Assembly, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement annuity delayed and reduced or (ii) maintain the current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes. Restricts participation in the General Assembly Retirement System to persons who became participants before the effective date. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. In the Chicago Teacher Article, requires the Fund to make consideration payments. Amends various Acts to make conforming changes. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding changes made by the amendatory Act; exempts certain existing agreements. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the 100th General Assembly become law.

Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill, but with changes that include the following. Further amends the Illinois Pension Code. In the General Assembly Article, provides that a Tier 1 employee must make the election before March 31, 2018 (instead of March 1, 2018). In the General Assembly, State Universities, Downstate Teachers, and Chicago Teachers Articles, makes changes to provisions concerning a Tier 1 employee's acceptance of a future increase in income and specifies that the election to have automatic annual increases reduced also applies to survivors annuities. Changes the definition of "future increase in income" to reference increases to a Tier 1 employee's base pay (instead of an increase in income in any form) and adds a definition of "base pay". In the General Assembly, State Employee, State Universities, and Downstate Teachers Articles, makes changes to the funding formulas. In the Chicago Teacher Article, provides that the State Comptroller (instead of the Fund) will make the consideration payments and amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for those consideration payments. In the State Universities and Downstate Teacher Articles, requires an additional contribution from employers for employees that earn more than $140,000 (instead of more than the salary set for the Governor) in a school year. In the State Employee, State Universities, and Downstate Teachers Articles, no later than January 1, 2018 and each year thereafter, requires those Systems to calculate the net present value of the pension benefits for certain inactive members and to offer those members the opportunity to elect to receive an accelerated pension benefit payment equal to 70% of the net present value of his or her pension benefits in lieu of receiving any pension benefit. Provides that if a person elects to receive an accelerated pension benefit payment, his or her credits and creditable service under that Article shall be terminated upon receipt of the accelerated pension benefit payment; except that the terminated service credit shall be used for the purposes of determining participation and benefits under the State Employees Group Insurance Act of 1971. Makes conforming changes in the State Employees Group Insurance Act of 1971. Makes other changes. Effective immediately, but does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, and 13 of the 100th General Assembly become law.

×