92nd General Assembly
Summary of HB1035
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House Sponsors:
BOLAND.

Short description: 
PEN CD-IMRF-COMPOUND 3% INCR                                               

Synopsis of Bill as introduced:
        Amends the IMRF Article of the Illinois Pension Code to  compound      
   the  automatic annual increase in retirement, incremental, disability,      
   and survivor annuities.  Amends the  State  Mandates  Act  to  require      
   implementation without reimbursement.  Effective immediately.               
          PENSION IMPACT NOTE (Illinois Pension Laws Commission)               
          According to IMRF, providing compounded annual increases to all      
          current and future beneficiaries would increase the accrued          
          liabilities of the Fund by $780.9 million ($724.7 million for        
          regular employees and $56.2 million for SLEP employees). The         
          corresponding increase in average annual cost (including nor-        
          moral cost) is estimated to be 1.49% of payroll for regular          
          IMRF employers and 2.77% of payroll for SLEP employers, assum-       
          ing amortization of the increase in accrued liabilities over 30      
          years. This cost would be reduced by a savings of 0.62% of           
          payroll from discontinuing the supplemental benefit payment.         
          Therefore, the total annual cost associated with HB 1035 is          
          0.87% of payroll for regular IMRF employers and 2.15% of             
          payroll for SLEP employers. The required contributions (as           
          percent of payroll) may vary widely among employers.                 
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

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


   END OF INQUIRY 



 Full Text  Bill Status