90th General Assembly
Summary of HB0914
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House Sponsors:

Short description: 
PEN CD-UNIV-ADMINISTRATIVE                                                 

Synopsis of Bill as introduced:
        Amends the  State  Universities  Article  of  the  Pension  Code.      
   Increases  the  System's  authority  to  issue  bonds,  allowing up to      
   $20,000,000 to be  outstanding  at  any  one  time.   Limits  existing      
   benefits  by:  (i) excluding certain earnings after June 30, 1997 from      
   the  calculation  of  the  final  rate  of  earnings;  (ii)   imposing      
   additional  requirements  on  return  to  service following a leave of      
   absence; (iii) requiring a return to service  within  one  year  after      
   discharge  in  order  to  obtain credit for military service; and (iv)      
   removing a provision allowing beneficiaries to elect to receive  death      
   benefits in multiple payments.  (Article 13, Section 5 of the Illinois      
   Constitution  may  prevent  these limitations from applying to certain      
   current or former members.)  For new participants only, limits  credit      
   for  unused  sick  leave  to  a  maximum  of  one  year.   Changes the      
   definition of  "effective  rate  of  interest"  by  adding  additional      
   factors  to  be  included  in  determining  the  rate,  including  the      
   desirability  of  minimizing volatility in the rate from year to year;      
   states that the change is a clarification of  existing  law.   Changes      
   provisions  relating  to  the  calculation of interest when purchasing      
   military service credit.  Deletes provisions that  suspend  or  reduce      
   the  annuity  of  certain  persons  who  return  to  employment  after      
   retirement.   Grants  the  Secretary  of  the Board the power to issue      
   subpoenas.    Allows  annuitants  and   beneficiaries   to   authorize      
   withholding  from  their annuities and benefits.  Allows the System to      
   pay benefits to the trustee of a trust created for the  benefit  of  a      
   minor  or  person  under legal disability; provides that the System is      
   not responsible for determining the validity of  the  trust  and  must      
   conclusively  rely  on the representations of the trustee.  Also makes      
   technical changes.  Effective immediately.                                  
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          40 ILCS 5/15-139                                                     
        Deletes from the bill changes that deleted provisions  suspending      
   or  reducing  the  annuity of certain persons who return to employment      
   after retirement.                                                           
        HOUSE AMENDMENT NO. 2.                                                 
        Changes provisions relating to the use of unused  sick  leave  in      
   calculating  service credit. Deletes the one-year maximum.  Limits the      
   types of unused sick leave that may be considered.                          
        HOUSE AMENDMENT NO. 3.                                                 
        Removes the return to service requirement for persons who are  on      
   a leave of absence for service with a teacher organization.                 
          PENSION NOTE                                                         
          Administrative changes will have no major fiscal impact.             
          PENSION NOTE, AMENDED                                                
          Change to SURS bonding authority would reduce growth of assets;      
          H-ams 1, 2, and 3 would not affect fiscal impact.                    
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   3     SENATE -   0


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