Bill Status of HB 6258   97th General Assembly

Short Description:  PEN CD-PENSION REFORM

House Sponsors
Rep. Elaine Nekritz-Daniel Biss-David Harris-Chris Nybo, Kelly Burke, Kelly M. Cassidy, William Cunningham, Robyn Gabel, Ann Williams, Linda Chapa LaVia, William Davis, Sara Feigenholtz, Greg Harris, Elizabeth Hernandez, Charles W. Krezwick, Karen May, Deborah Mell, Cynthia Soto, Michael J. Zalewski, Cory Foster and Eddie Winters

Last Action  View All Actions

DateChamber Action
  1/8/2013HouseSession Sine Die

Statutes Amended In Order of Appearance
20 ILCS 3005/7from Ch. 127, par. 417
20 ILCS 3005/8from Ch. 127, par. 418
30 ILCS 105/13from Ch. 127, par. 149
30 ILCS 105/24.12 new
30 ILCS 105/24.13 new
30 ILCS 122/20
40 ILCS 5/1-103.3
40 ILCS 5/1-160
40 ILCS 5/1-161 new
40 ILCS 5/2-105.1 new
40 ILCS 5/2-105.2 new
40 ILCS 5/2-108from Ch. 108 1/2, par. 2-108
40 ILCS 5/2-119from Ch. 108 1/2, par. 2-119
40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/2-121.1from Ch. 108 1/2, par. 2-121.1
40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
40 ILCS 5/2-125from Ch. 108 1/2, par. 2-125
40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
40 ILCS 5/2-162
40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
40 ILCS 5/14-103.40 new
40 ILCS 5/14-103.41 new
40 ILCS 5/14-107from Ch. 108 1/2, par. 14-107
40 ILCS 5/14-108from Ch. 108 1/2, par. 14-108
40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110
40 ILCS 5/14-114from Ch. 108 1/2, par. 14-114
40 ILCS 5/14-131
40 ILCS 5/14-132from Ch. 108 1/2, par. 14-132
40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
40 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.08
40 ILCS 5/14-152.1
40 ILCS 5/15-107.1 new
40 ILCS 5/15-107.2 new
40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
40 ILCS 5/15-113.6from Ch. 108 1/2, par. 15-113.6
40 ILCS 5/15-113.7from Ch. 108 1/2, par. 15-113.7
40 ILCS 5/15-134.5
40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
40 ILCS 5/15-155.1 new
40 ILCS 5/15-156from Ch. 108 1/2, par. 15-156
40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
40 ILCS 5/15-158.2
40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
40 ILCS 5/15-198
40 ILCS 5/16-106.4 new
40 ILCS 5/16-106.5 new
40 ILCS 5/16-121from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-132from Ch. 108 1/2, par. 16-132
40 ILCS 5/16-133from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
40 ILCS 5/16-158.1from Ch. 108 1/2, par. 16-158.1
40 ILCS 5/16-158.2 new
40 ILCS 5/16-203
40 ILCS 5/20-121from Ch. 108 1/2, par. 20-121
40 ILCS 5/20-123from Ch. 108 1/2, par. 20-123
40 ILCS 5/20-124from Ch. 108 1/2, par. 20-124
40 ILCS 5/20-125from Ch. 108 1/2, par. 20-125
30 ILCS 805/8.36 new

Synopsis As Introduced
Amends the General Provisions, General Assembly, State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. In the General Provisions Article, creates a cash balance plan for new hires of the State Universities and Teachers' Retirement Systems and for certain Tier II participants. Increases the retirement age for certain Tier I members and participants. Changes the conditions of eligibility for, and the amount of, automatic annual increases for Tier I retirees. Increases required employee contributions for Tier I members and participants. Limits pensionable salary for Tier I participants. Changes the required State contribution to each of the affected retirement systems so that those systems are 100% funded by 2043. Guarantees certain funding levels. In the State Universities and Downstate Teacher Articles, shifts costs to local employers. Makes other changes. Amends the State Finance Act. To the list of standardized items of appropriation, adds "State retirement contribution for annual normal cost" and "State retirement contribution for unfunded accrued liability". Defines those terms. Amends the Governor's Office of Management and Budget Act. Adds those terms to a list of classifications to be used in statements and estimates of expenditures submitted to the Office in connection with the preparation of a State budget. Amends the State Mandates Act to require implementation without reimbursement. Includes an inseverability provision. Makes other changes. Effective immediately.

 Balanced Budget Note (Office of Management and Budget)
 HB 6258 could provide significant savings to the fiscal year 2014 budget, approximately $1.6 billion from reduced retirement contributions. However, because the bill contains an inseverability clause, a successful legal challenge to any single provision of the bill would invalidate the bill in its entirety.

 Fiscal Note (Government Forecasting & Accountability)
 HB 6258 will not have a discernible fiscal impact upon the operations of the Commission on Government Forecasting and Accountability.

 Pension Note (Government Forecasting & Accountability)
 A recent cost study by SERS’ actuary projects the State to save $326 million in contributions in FY 2014 and over $27 billion in contributions through FY 2045 by adopting the benefit changes in HB 6258. SURS’ actuary projects the State will save $333 million in contributions for FY 2014 and approximately $18.8 billion in contributions through FY 2045 by adopting the benefit changes in HB 6258. TRS’ actuary projects that the State will be able to reduce contributions in FY 2014 by $1.22 billion by adopting this bill. Additionally, the State is projected to save $114.17 billion in contributions through FY 2043. TRS’s actuary did not provide data for FY 2044 and 2045

 State Debt Impact Note (Government Forecasting & Accountability)
 HB 6258 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness. However, after each series of Pension Obligation Bonds and Notes are paid off, the General Revenue Funds being used to pay those debts off would be relegated to the Pension Stabilization Fund until State FY 2045 or until each of the designated retirement systems reaches 100% funding ratio.

Actions 
DateChamber Action
  12/5/2012HouseFiled with the Clerk by Rep. Elaine Nekritz
  12/5/2012HouseAdded Chief Co-Sponsor Rep. Daniel Biss
  12/5/2012HouseAdded Chief Co-Sponsor Rep. David Harris
  12/5/2012HouseAdded Chief Co-Sponsor Rep. Chris Nybo
  12/5/2012HouseAdded Co-Sponsor Rep. Kelly Burke
  12/5/2012HouseAdded Co-Sponsor Rep. Kelly M. Cassidy
  12/5/2012HouseAdded Co-Sponsor Rep. William Cunningham
  12/5/2012HouseAdded Co-Sponsor Rep. Robyn Gabel
  12/5/2012HouseAdded Co-Sponsor Rep. Ann Williams
  12/5/2012HouseAdded Co-Sponsor Rep. Linda Chapa LaVia
  12/5/2012HouseAdded Co-Sponsor Rep. William Davis
  12/5/2012HouseAdded Co-Sponsor Rep. Sara Feigenholtz
  12/5/2012HouseAdded Co-Sponsor Rep. Jehan A. Gordon
  12/5/2012HouseAdded Co-Sponsor Rep. Greg Harris
  12/5/2012HouseAdded Co-Sponsor Rep. Elizabeth Hernandez
  12/5/2012HouseAdded Co-Sponsor Rep. Charles W. Krezwick
  12/5/2012HouseAdded Co-Sponsor Rep. Karen May
  12/5/2012HouseAdded Co-Sponsor Rep. Deborah Mell
  12/5/2012HouseAdded Co-Sponsor Rep. Cynthia Soto
  12/5/2012HouseAdded Co-Sponsor Rep. Michael J. Zalewski
  12/5/2012HouseAdded Co-Sponsor Rep. Cory Foster
  12/5/2012HouseFirst Reading
  12/5/2012HouseReferred to Rules Committee
  12/5/2012HouseRemoved Co-Sponsor Rep. Jehan A. Gordon
  12/11/2012HouseFiscal Note Requested by Rep. André M. Thapedi
  12/11/2012HouseBalanced Budget Note Requested by Rep. André M. Thapedi
  12/11/2012HousePension Note Requested by Rep. André M. Thapedi
  12/11/2012HouseState Debt Impact Note Requested by Rep. André M. Thapedi
  12/18/2012HouseAdded Co-Sponsor Rep. Eddie Winters
  1/3/2013HouseBalanced Budget Note Filed
  1/4/2013HouseFiscal Note Filed
  1/4/2013HousePension Note Filed
  1/4/2013HouseState Debt Impact Note Filed
  1/8/2013HouseSession Sine Die

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