HARTKE-KLINGLER AND FOWLER. 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 Pension Code. Provides an early retirement incentive program for certain State employees who retire between January 1, 2001 and July 1, 2001 (in certain cases, as late as January 1, 2002). 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 2002 through 2008. 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 2001 may be paid during July or August of 2001 from either a fiscal year 2001 or fiscal year 2002 appropriation. Provides that in fiscal year 2003 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) There are approximately 17,800 members eligible to participate in the ERI. Assuming 6,200 (35%) retire early, it is estimated the accrued liability of SERS would increase by approximatley $537.2 million. Employee contributions are expected to total $33.2 million, and therefore the increase in accrued liability the State would be required to amortize is estimated to be $503.9 million. PENSION NOTE, REVISED (Pension Laws Commission) According to the Commission's actuary, there are approximately 20,275 members of SERS who would be eligible to participate in the ERI. Assuming 7,100 (approximately 35%) members retire early, it is estimated the accrued liability of SERS would in- crease by $620.3 million. Required employee contributions are expected to total $36.1 million. Therefore the increase in accrued liability the State would be required to amortize is estimated to be $584.2 million. HB 3101 requires the State to contribute $90 million to SERS and $1 million to TRS in FY 2002 to amortize the increase in accrued liability. The bill requires the remainder of the accrued liability to be amortized in 6 equal annual install- ments, beginning in FY 2003. The Commission's actuary estimates the annual payments to be $108.5 million. 00-01-12 H FIRST READING 00-01-12 H REFERRED TO HOUSE RULES COMMITTEE RULES 00-01-25 H ADDED AS A JOINT SPONSOR KLINGLER 00-01-31 H PENSION NOTE FILED 00-01-31 H COMMITTEE RULES 00-02-23 H ADDED AS A CO-SPONSOR FOWLER 00-02-24 H PENSION NOTE FILED REVISED 00-02-24 H COMMITTEE RULES 01-01-09 H SESSION SINE DIE END OF INQUIRY Full Text Bill Summary