House Sponsors: SMITH,MICHAEL. Short description: PEN CD-UNIV-THIRTEENTH CHECK Synopsis of Bill as introduced: Amends the State Universities Article of the Illinois Pension Code. Provides for an additional payment to persons receiving a retirement or survivor annuity, equal to half the monthly benefit, to be paid on the December 31 next following a fiscal year in which the System's investment return is at least 190% of the prescribed rate of interest determined for that year by the Board. Terminates the benefit after the System's 2003-2004 fiscal year. Makes the benefit available only if the System's funding ratio is at least 90%. Effective immediately. PENSION NOTE (Pension Laws Commission) There is no increase in accrued liability associated with HB 2236 but there is a cost (that cannot be determined) as some investment returns that would normally remain with SURS to be reinvested would instead be paid out as benefits. This would increase State contributions over time by an amount that cannot be determined. The increase in annual contributions is estimated to be minor, as the 13th check could only be paid a maximum of 4 times (FY 2001 through 2004). According to SURS, if the provision that grants the 13th check had been in effect from 1971 to 1997, the benefit would have been paid in 10 of the last 26 years (37% of the time). SURS would have distribu- ted $19 million on December 1, 1998 due to a total return on investment assets equal to over 200% of the investment return assumption. SURS would not have issued a 13th check on either December 1, 1999 or December 1, 2000. 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