92nd General Assembly
Summary of HB1739
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House Sponsors:
SMITH,MICHAEL.

Short description: 
PEN CD-TEACHERS-RULE OF 85                                                 

Synopsis of Bill as introduced:
        Amends the Downstate and Chicago Teacher Articles of the Illinois      
   Pension Code.  Allows retirement without discount at  any  age  which,      
   when  added  to  the  number of years of the member's total creditable      
   service, equals at least 85.  In the Chicago  Teacher  Article,  makes      
   the initial annual increase in retirement annuity begin to accrue from      
   the  date  of  retirement  rather  than the 61st birthday.  Amends the      
   State Mandates Act to require  implementation  without  reimbursement.      
   Effective immediately.                                                      
          PENSION NOTE (Pension Laws Commission)                               
          According to TRS, HB 1739 would increase the accrued liability       
          of TRS by an estimated $1.0 billion. The estimated increase in       
          FY 2002 total annual costs is $2.5 million, or 0.10% of pay-         
          roll. From 2010 through 2045, it is estimated the required           
          employer contribution would increase from 17.20% to 19.48%, or       
          2.28% of payroll. This percentage of payroll amounts to              
          increased employer contributions of $193.9 million in FY 2010,       
          and will grow commensurate with payroll. According to the            
          Commission's actuary, HB 1739 would increase the accrued lia-        
          bility of CTRS by $117.9 million, and the annual cost by 0.66%       
          of payroll. As the employer (the Chicago Board of Education) is      
          not required to contribute to the Fund when the funded ratio is      
          above 90%, no additional employer contributions would be re-         
          quired for several years. The Chicago Teachers' Pension Fund         
          currently has a funded ratio of 96.7%, and the ratio is expec-       
          ted to stay above 90% until FY 2018.                                 
 
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