Full Text of SB1673 97th General Assembly
SB1673ham013 97TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 1/8/2013
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| 1 | | AMENDMENT TO SENATE BILL 1673
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. Short title. This Act may be cited as the | 6 | | Pension Review Commission Act. | 7 | | Section 5. Pension Review Commission.
There is created the | 8 | | Pension Review Commission (hereinafter "Commission") as an | 9 | | independent commission within the legislative branch of State | 10 | | government. The Commission shall consist of 8 Commissioners. | 11 | | Within 15 calendar days following the effective date of this | 12 | | amendatory Act of the 97th General Assembly, the Speaker of the | 13 | | House of Representatives, the President of the Senate, the | 14 | | Minority Leader of the House of Representatives and the | 15 | | Minority Leader of the Senate (collectively "legislative | 16 | | leaders") shall each appoint 2 Commissioners.
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| 1 | | Commissioners shall be adults and residents of Illinois. | 2 | | Commissioners may not be persons required to be registered | 3 | | under the Lobbyist Registration Act. In the event of a vacancy, | 4 | | the respective appointing legislative leader shall appoint a | 5 | | new member to fill the vacancy within 15 calendar days after | 6 | | the vacancy. Commissioners will serve for the duration of the | 7 | | Commission's existence as defined in this Act of the 97th | 8 | | General Assembly. Commissioners shall serve without | 9 | | compensation. | 10 | | The Commission may, without regard to the Personnel Code, | 11 | | employ and fix the compensation or remuneration of employees | 12 | | and contract for personal and professional services as it | 13 | | considers necessary or desirable, subject to appropriation. | 14 | | The Commission on Government Forecasting and | 15 | | Accountability (COGFA) shall provide administrative support | 16 | | and assistance to the Commission, but COGFA shall not exercise | 17 | | any authority or control over the Commission or its employees | 18 | | or contractors. | 19 | | Section 10. Standards. | 20 | | (a) In meeting its responsibilities as set forth in this | 21 | | Act, the Commission may convene periodically as set forth in | 22 | | this Act to determine the changes to existing law necessary to | 23 | | ensure that the State Employee Retirement System (SERS), the | 24 | | General Assembly Retirement System (GARS), the State | 25 | | University Retirement System (SURS), and the Teacher's |
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| 1 | | Retirement System (TRS) will reach 100% actuarial funding for | 2 | | all then-existing liabilities not later than December 31, 2045, | 3 | | calculated and defined in full accordance with the applicable | 4 | | standards and guidelines of the Governmental Accounting | 5 | | Standards Board (GASB). The Commission will set forth its | 6 | | determinations in the form of a final report. | 7 | | (b) In determining the necessary changes to existing law, | 8 | | the Commission shall consider the following factors: | 9 | | 1. the total amount of the existing unfunded | 10 | | liabilities for the four retirement systems identified in | 11 | | this Act; | 12 | | 2. the current and projected rates of growth in those | 13 | | unfunded liabilities; | 14 | | 3. the current and future projected total required | 15 | | annual State contributions to the retirement systems; for | 16 | | purposes of this Act, "total required annual State | 17 | | contribution to the retirement systems" is the sum of the | 18 | | amounts that the State of Illinois must pay on an | 19 | | annualized basis from general revenue funds and any other | 20 | | fund source to the four retirement systems identified in | 21 | | this Act, including the normal cost of benefits earned and | 22 | | payment towards the interest and principal that comprise | 23 | | the unfunded accrued liabilities, as prescribed under | 24 | | current law; | 25 | | 4. the annual cost to the State attributable to | 26 | | retirement benefits earned by members as a result of |
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| 1 | | employment at entities other than State of Illinois; | 2 | | 5. the cost to the entities other than the State of | 3 | | Illinois including but not limited to any unit of local | 4 | | government attributable to retirement benefits earned by | 5 | | members as a result of employment at entities other than | 6 | | the State of Illinois; | 7 | | 6. the most costly components of the benefit structures | 8 | | of the four retirement systems identified in this Public | 9 | | Act, which apply or relate to any member of the four | 10 | | retirement systems identified in this Act, irrespective of | 11 | | whether the member is currently receiving retirement | 12 | | benefits including, but not limited to the following: | 13 | | a. the amounts of the cost of living adjustments | 14 | | (COLA) to which members are entitled, | 15 | | b. the definition of the salary basis on which the | 16 | | calculation of the member's retirement benefit is | 17 | | based, commonly known as the member's "Final Average | 18 | | Compensation" (FAC) (or the equivalent thereof), | 19 | | c. the methods and definitions that the retirement | 20 | | systems to which this Act applies use to determine: | 21 | | actuarial liability, normal cost, actuarially-required | 22 | | annual contribution, unfunded actuarial liabilities, | 23 | | asset valuation, and other such calculations. | 24 | | 7. the value of public employee pension benefits in | 25 | | comparable states for similar positions of employment; | 26 | | 8. the value of retirement benefits for comparable |
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| 1 | | services performed in the private sector in Illinois and | 2 | | comparable states based on the responsibility and | 3 | | discretion required in the position of employment; | 4 | | 9. the effect of inflation as defined and calculated by | 5 | | the Bureau of Labor Statistics (BLS) of the United States | 6 | | government upon retirement benefits earned by members of | 7 | | the retirement systems to which this Act applies; | 8 | | 10. the amounts of employee contributions to the four | 9 | | pension systems; and | 10 | | 11. the interests and welfare of the public and the | 11 | | financial ability of the State to meet those costs. | 12 | | Section 15. Public hearings; Commission report; General | 13 | | Assembly disapproval of report. | 14 | | (a)
The Commission shall conduct public hearings prior to | 15 | | filing its report. At the public hearings, the Commission shall | 16 | | allow interested persons to present their views and comments. | 17 | | The Commission may prescribe reasonable rules for the conduct | 18 | | of public hearings. The meetings of the Commission are subject | 19 | | to the Open Meetings Act.
| 20 | | (b) The Commission shall file a report including its | 21 | | determinations of changes to existing law, set forth in the | 22 | | form of a draft bill with the Clerk of the House of | 23 | | Representatives and the Secretary of Senate on April 30, 2013. | 24 | | The Commission may also file a report on April 30, July 1, and | 25 | | November 1 of any calendar year in which the Commission chooses |
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| 1 | | to submit a report. Upon submission the Clerk of the House and | 2 | | the Secretary of the Senate shall make reports available to the | 3 | | general public, including via the world wide web and other | 4 | | electronic means that are suitable. | 5 | | (c) The General Assembly may disapprove the report of the | 6 | | Commission in whole within thirty (30) days after the report is | 7 | | filed by adoption of a resolution by a record vote of the | 8 | | majority of the members elected in each house directed to the | 9 | | Commission. Such resolution shall be binding upon the | 10 | | Commission. Adoption of any such resolution in this manner | 11 | | shall prevent the determinations set forth in the final report | 12 | | from becoming law. | 13 | | (d) If both chambers of the General Assembly do not adopt a | 14 | | resolution of disapproval in accordance with the provisions of | 15 | | subsection (c) of this Section, the provisions of the report | 16 | | making changes to existing law shall take effect and become | 17 | | law.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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