Legislation

Mandate Entry Age Normal actuarial cost method

Bill Gutierrez — Fri, 15 Feb 2013 03:49:30 +0000

Number:

HB1277

HB 1277 changes the actuarial cost method for the 5 state retirements from “projected unit credit” actuarial cost method, to “entry-age normal” actuarial cost method. The impact this change will have on the liabilities should be minimal, and this method is the most common accurate actuarial cost method as used in the public retirement systems.

Status:

Passed House Personnel and Pensions Committee on March 21, 2013, placed on 2nd Reading

Required Actuarial Experience Study

Bill Gutierrez — Fri, 15 Feb 2013 03:50:41 +0000

Number:

HB1283

HB 1283 provides that the 5 State Retirement Systems shall conduct an actuarial experience study at least once every 3 years, as opposed to current law which requires such studies to occur at least once every 5 years.

Status:

Assigned to House Rules Committee

Repeals the Pension Diminishment Clause of the Illinois Constitution

Bill Gutierrez — Fri, 15 Feb 2013 03:51:55 +0000

Number:

HJRCA11

HJRCA 11 proposes to amend the Illinois Constitution by repealing the Pension Diminishment Clause as found in Article 13, Section 5 of the Constitution. This of course, would require voter approval in the next general election. The Pension Diminishment clause states the following:

Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

Status:

Assigned to House Rules Committee

Creation of Tier 3 retirement plan for 5 State Retirement Systems

Bill Gutierrez — Fri, 15 Feb 2013 03:53:03 +0000

Number:

HB1271

HB 1271 creates a Tier 3 retirement plan for those that first become participants under any of the 5 state retirement systems after January 1, 2014. For such members, they will receive a retirement benefit based on the two methods as provided below which produces the highest benefit. The 2 methods are:

Status:

Assigned to House Rules Committee

Prohibited investments with Firearm manufacturing companies

Bill Gutierrez — Fri, 15 Feb 2013 03:54:24 +0000

Number:

HB1296

HB 1296 has an immediate effective date and requires all systems and funds under the Pension Code to identify the amount of direct or indirect holdings with firearm manufacturing companies. The information shall be compiled into a list no later than 90 days following the effective date. The Systems shall exercise due diligence in compiling the list, and the list is to be updated on an annual basis.

Status:

Passed House Personnel and Pensions Committee on March 21, 2013, placed on 2nd Reading

Prohibits SURS participants from accruing any service credit with a labor union

Bill Gutierrez — Wed, 20 Feb 2013 21:32:16 +0000

Number:

HB2226

HB 2226 applies to all pension code regulated systems that allow for participants of such systems to accrue service credit with that system for subsequent employment with a labor union. HB 2226 impacts SURS so that SURS members currently accruing credit with a union can no longer accrue SURS service credit with that union after the effective date of the bill, which has an immediate effective date. A similar law was passed last year, but only applied to new hires of such unions. This law “grandfathered” SURS members that were employed with the unions prior to that effective

Status:

Assigned to House Rules Committee

Comprehensive Pension Reform to 4 of the 5 State Retirement Systems

Bill Gutierrez — Wed, 20 Feb 2013 21:34:04 +0000

Number:

HB2228

Tier 1 Participant and Tier 1 Retiree Benefit Reforms

Pensionable Earnings Limitations

Status:

Assigned to House Rules Committee

Prohibited investments with Firearm manufacturing companies

Bill Gutierrez — Wed, 20 Feb 2013 21:35:31 +0000

Number:

HB2248

HB 2248 has an immediate effective date and requires all systems and funds under the Pension Code to identify the amount of direct or indirect holdings with firearm manufacturing companies. The information shall be compiled into a list no later than 90 days following the effective date. The Systems shall exercise due diligence in compiling the list, and the list is to be updated on an annual basis. On an annual basis, the System must notify the company that has been placed on such list, and the company must either cease the manufacturing of firearms within 90 days of recei

Status:

Failed to pass the House Personnel and Pensions Committee on March 21, 2013, re-assigned to House Rules Committee

Pension Reform to the 5 State Systems

Bill Gutierrez — Wed, 20 Feb 2013 21:40:52 +0000

Number:

HB2365

HB 2365 applies plan and funding changes to the 5 state retirement systems.

Pensionable Earnings Cap

HB 2365 provides that after the effective date of this act, if a participant in the defined benefit plan earns more than the Tier 2 earnings cap ($106,800) or the rate of earnings 1 year preceding the effective date of this act, whichever is greater, then contributions on earnings that exceed this cap shall be deposited into a self-managed plan (SMP).

Status:

Assigned to House Rules Committee

Comprehensive Pension Reform for 5 State Retirement Systems including SURS

Bill Gutierrez — Tue, 26 Feb 2013 16:54:27 +0000

Number:

HB2375

HB 2375 increases retirement age so that all Tier 1 members that remain active after the effective date shall be subject to a minimum retirement age of 67. Members to which this shall apply, may retire earlier than age 67, but shall be subject to 6% reduction to their retirement annuity for each year that member’s age is under 67. This increase in retirement age shall not apply to:

Status:

Assigned to Personnel and Pensions Committee