90th General Assembly
Summary of SB0499
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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.                                  
          PENSION NOTE                                                         
          SB499 will have no major fiscal impact.                              
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          40 ILCS 5/15-112                from Ch. 108 1/2, par. 15-112        
          40 ILCS 5/15-113.2              from Ch. 108 1/2, par. 15-113.2      
          40 ILCS 5/15-113.3              from Ch. 108 1/2, par. 15-113.3      
          40 ILCS 5/15-113.4              from Ch. 108 1/2, par. 15-113.4      
          40 ILCS 5/15-113.7              from Ch. 108 1/2, par. 15-113.7      
          40 ILCS 5/15-125                from Ch. 108 1/2, par. 15-125        
          40 ILCS 5/15-139                from Ch. 108 1/2, par. 15-139        
          40 ILCS 5/15-143                from Ch. 108 1/2, par. 15-143        
          40 ILCS 5/15-153.2              from Ch. 108 1/2, par. 15-153.2      
          40 ILCS 5/15-157                from Ch. 108 1/2, par. 15-157        
          40 ILCS 5/15-167.2              from Ch. 108 1/2, par. 15-167.2      
          40 ILCS 5/15-168.1 new                                               
          40 ILCS 5/15-185                from Ch. 108 1/2, par. 15-185        
          40 ILCS 5/15-190                from Ch. 108 1/2, par. 15-190        
          40 ILCS 5/15-191                from Ch. 108 1/2, par. 15-191        
          40 ILCS 5/15-144 rep.                                                
          Adds reference to:                                                   
          40 ILCS 5/16-153.2 rep.                                              
        Deletes everything.  Repeals an obsolete Section relating to  the      
   old   health   insurance   benefit  for  retired  downstate  teachers.      
   Effective immediately.                                                      
          PENSION NOTE, H-AM 1                                                 
          There may be a minor increase in administrative costs.               
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          40 ILCS 5/16-153.2 rep.                                              
          Adds reference to:                                                   
          40 ILCS 5/1-119 new                                                  
          750 ILCS 5/503                  from Ch. 40, par. 503                
        Deletes everything.  Amends the General Provisions Article of the      
   Pension Code  to  provide  for  the  issuance  of  Qualified  Illinois      
   Domestic  Relations  Orders  (QILDROs).   Provides for a former spouse      
   designated in a QILDRO to receive all or a specified  portion  of  the      
   retirement benefit or member's refund otherwise payable to a member or      
   the  member's  beneficiary  under  the Code.  Specifies conditions and      
   procedures.  Requires the member's written consent before a QILDRO  is      
   effective  against a current member.  Amends the Illinois Marriage and      
   Dissolution of Marriage Act.  Provides that  pension  benefits  become      
   marital property.  Includes provisions for valuing pension benefits as      
   marital  property  and  other provisions.  Effective July 1, 1999 or 6      
   months after becoming law, whichever is later.                              
          JUDICIAL NOTE, H-AM 1                                                
          No decrease or increase in need for the number of judges.            
          CORRECTIONAL NOTE, H-AM 1                                            
          This bill has no fiscal or prison population impact.                 
          STATE DEBT NOTE, H-AM 1                                              
          There will be no impact on the level of State indebtedness.          
          STATE MANDATES ACT FISCAL NOTE, H-AM 1                               
          Fails to create a State mandate.                                     
          HOME RULE NOTE, H-AM 1                                               
          Contains no language preempting home rule.                           
          FISCAL NOTE, H-AM 1  (State Employees' Retirement System)            
          Estimated first year impact, $75,000 to $85,000; subsequent          
          annual impact, $50,000.                                              
Last action on Bill: TOTAL VETO STANDS

   Last action date: 98-11-19

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   1


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