Full Text of SB1673 97th General Assembly
SB1673ham014 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.
The Pension Review | 8 | | Commission, hereinafter called the "Commission", is hereby | 9 | | created and shall be comprised of eight Commissioners. Within | 10 | | fifteen calendar days following the effective date of this | 11 | | amendatory Act of the 97th General Assembly, the Speaker of the | 12 | | House of Representatives, the President of the Senate, the | 13 | | Minority Leader of the House of Representatives and the | 14 | | Minority Leader of the Senate shall each appoint two | 15 | | Commissioners.
| 16 | | Commissioners shall be at least 18 years of age, reside |
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| 1 | | within Illinois, and shall not be required to register under | 2 | | the Lobbyist Registration Act. In the event of a vacancy, the | 3 | | respective appointing legislative leader shall appoint a new | 4 | | member to fill the vacancy within fifteen calendar days after | 5 | | the vacancy. | 6 | | The Commission on Government Forecasting and | 7 | | Accountability (COGFA) shall provide administrative support | 8 | | and assistance to the Commission. | 9 | | Section 10. Standards for Delegation of Authority.
| 10 | | (a) The Commission shall determine the changes to law | 11 | | necessary to ensure that the State Employee Retirement System, | 12 | | the General Assembly Retirement System, the State University | 13 | | Retirement System, and the Teacher's Retirement System will | 14 | | reach 100% actuarial funding for all then-existing liabilities | 15 | | not later than December 31, 2045, calculated and defined in | 16 | | full accordance with the applicable standards and guidelines of | 17 | | the Governmental Accounting Standards Board. | 18 | | (b) In determining the necessary changes to existing law, | 19 | | the Commission shall consider the following factors: | 20 | | 1. the total amount of the existing unfunded | 21 | | liabilities for the four retirement systems identified in | 22 | | this Act; | 23 | | 2. the current and projected rates of growth in those | 24 | | unfunded liabilities; | 25 | | 3. the current and future projected total required |
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| 1 | | annual State contributions to the retirement systems; for | 2 | | purposes of this Act, "total required annual State | 3 | | contribution to the retirement systems" is the sum of the | 4 | | amounts that the State of Illinois must pay on an | 5 | | annualized basis from general revenue funds and any other | 6 | | fund source to the four retirement systems identified in | 7 | | this Public Act, including the normal cost of benefits | 8 | | earned and payment towards the interest and principal that | 9 | | comprise the unfunded accrued liabilities, as prescribed | 10 | | under current law; | 11 | | 4. the annual cost to the State attributable to | 12 | | retirement benefits earned by members as a result of | 13 | | employment at entities other than State of Illinois; | 14 | | 5. the cost to the entities other than the State of | 15 | | Illinois including but not limited to any unit of local | 16 | | government attributable to retirement benefits earned by | 17 | | members as a result of employment at entities other than | 18 | | the State of Illinois; | 19 | | 6. the most costly components of the benefit structures | 20 | | of the four retirement systems identified in this Public | 21 | | Act, which apply or relate to any member of the four | 22 | | retirement systems identified in this Act, irrespective of | 23 | | whether the member is currently receiving retirement | 24 | | benefits including, but not limited to the following: | 25 | | a. the amounts of the cost of living adjustments | 26 | | (COLA) to which members are entitled, |
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| 1 | | b. the definition of the salary basis on which the | 2 | | calculation of the member's retirement benefit is | 3 | | based, commonly known as the member's "Final Average | 4 | | Compensation" (FAC) (or the equivalent thereof), | 5 | | c. the methods and definitions that the retirement | 6 | | systems to which this Act applies use to determine: | 7 | | actuarial liability, normal cost, actuarially-required | 8 | | annual contribution, unfunded actuarial liabilities, | 9 | | asset valuation, and other such calculations. | 10 | | 7. the value of public employee pension benefits in | 11 | | comparable states for similar positions of employment; | 12 | | 8. the value of retirement benefits for comparable | 13 | | services performed in the private sector in Illinois and | 14 | | comparable states based on the responsibility and | 15 | | discretion required in the position of employment; | 16 | | 9. the effect of inflation as defined and calculated by | 17 | | the Bureau of Labor Statistics (BLS) of the United States | 18 | | government upon retirement benefits earned by members of | 19 | | the retirement systems to which this Public Act applies; | 20 | | 10. the amounts of employee contributions to the four | 21 | | pension systems; and | 22 | | 11. the interests and welfare of the public and the | 23 | | financial ability of the State to meet those costs. | 24 | | Section 15. Public Hearings.
The Commission shall conduct | 25 | | public hearings prior to filing its report. Notice of hearings |
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| 1 | | shall be made on the General Assembly website and by methods | 2 | | deemed appropriate by the Commission. All interested persons | 3 | | shall be provided with an opportunity to comment. Any documents | 4 | | submitted to the Commission by those seeking to comment shall | 5 | | be deemed public records under the Freedom of Information Act.
| 6 | | Section 20. Commission Report.
The Commission shall | 7 | | prepare a report, set forth in the form of a bill, no later | 8 | | than April 30, 2013. The report shall be submitted to the Clerk | 9 | | of the House and Secretary of the Senate, and shall be made | 10 | | available on the General Assembly website. The Commission may | 11 | | also file a report on April 30 and November 1 of any calendar | 12 | | year in which the Commission chooses to submit a report.
| 13 | | Section 25. General Assembly Disapproval of the Report.
| 14 | | The General Assembly may disapprove the report of the | 15 | | Commission in whole within thirty legislative days after the | 16 | | report is filed by adoption of a joint resolution by a record | 17 | | vote of the majority of the members elected in each house. If | 18 | | the General Assembly does not adopt a joint resolution | 19 | | disapproving of the report, the Speaker of the House of | 20 | | Representatives and the President of the Senate shall certify | 21 | | the bill and it shall be presented to the Governor in | 22 | | accordance with Article 4, Section 9(a) of the Illinois | 23 | | Constitution. The Governor shall sign the bill and it shall | 24 | | become law. The bill shall not be certified if the General |
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| 1 | | Assembly adopts a joint resolution disapproving of the report.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.".
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