92nd General Assembly
Status of HB1849
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POE.

   30 ILCS 105/14a           from Ch. 127, par. 150a                           
   30 ILCS 105/15a           from Ch. 127, par. 151a                           
   40 ILCS 5/14-108.3                                                          
   40 ILCS 5/16-133.3        from Ch. 108 1/2, par. 16-133.3                   
   40 ILCS 15/1.6 new                                                          

        Amends the State Employee and Downstate Teacher Articles  of  the      
   Illinois Pension Code.  Provides an early retirement incentive program      
   for  certain  State  employees  with  at  least  8 years of membership      
   service.  Requires the Pension Laws Commission to report  on  the  net      
   savings  or  cost  of  the  program.   Requires  the State to fund the      
   program through separate  contributions  made  in  fiscal  years  2004      
   through 2010.  Amends the State Pension Funds Continuing Appropriation      
   Act    to    guarantee    those   contributions   through   continuing      
   appropriations.  Amends the State Finance  Act  to  restrict  personal      
   service  contracts  with  these early retirees.  Requires the lump sum      
   payment for unused vacation and sick leave to  be  separate  from  the      
   final  payment of salary and requires the use of specified withholding      
   rates.  Provides that a lump sum  payment  payable  to  a  person  who      
   terminates  State  service  during  June  of  2002 or 2003 may be paid      
   during the lapse period from either the expiring appropriation or  the      
   appropriation  for the next fiscal year.  Provides that in fiscal year      
   2004 the General Assembly shall not fund the vacated positions at more      
   than  85%  of  the  rate  of  compensation  payable  at  the  time  of      
   retirement.  Effective immediately.                                         
          PENSION NOTE (Pension Laws Commission)                               
          Assuming 7,392 members (approximately 35% of those eligible)         
          retire early, it is estimated the accrued liability of SERS          
          would increase by $611.5 million. Required employee contribu-        
          tions are expected to total $41.6 million. Therefore, the in-        
          crease in accrued liability the State would be required to           
          amortize is estimated to be $569.9 million. HB1849 requires          
          the State to contribute $90 million to SERS and $1 million           
          to TRS in FY03 to amortize the increase in accrued liability,        
          and requires the remainder of the accrued liability to be            
          amortized in 6 equal installments, beginning in FY04. The            
          Commission's actuary estimates annual payments to be $105.4          
          million.                                                             
   FEB-16-2001  H  FILED WITH CLERK                                               
   FEB-16-2001  H  FIRST READING                                                  
   FEB-16-2001  H  REFERRED TO HOUSE RULES COMMITTEE        RULES                 
   FEB-21-2001  H       ASSIGNED TO COMMITTEE               PERS PENSION          
   MAR-01-2001  H                        PENSION NOTE FILED                       
   MAR-01-2001  H                   COMMITTEE               PERS PENSION          
   MAR-16-2001  H  RE-REFERRED TO RULES COMM/RULE 19(A)     RULES         HRUL    
   JAN-07-2003  H  SESSION SINE DIE                                               

   END OF INQUIRY 



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