MURPHY, SCHOENBERG AND MOORE,EUGENE.
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
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.
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
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 3 SENATE - 0
END OF INQUIRY
Full Text Bill Status