Date	Chamber	Action
12/3/2014	House	Session Sine Die

Statutes Amended In Order of Appearance

40 ILCS 5/1-161 new

40 ILCS 5/2-124

from Ch. 108 1/2, par. 2-124

40 ILCS 5/14-131

40 ILCS 5/15-155

from Ch. 108 1/2, par. 15-155

40 ILCS 5/16-158

from Ch. 108 1/2, par. 16-158

40 ILCS 5/18-131

from Ch. 108 1/2, par. 18-131

Synopsis As Introduced
Amends the Illinois Pension Code. With respect to the 5 State-funded retirement systems: Provides a new funding formula for State contributions, with a 100% funding goal and amortization calculated on a level dollar amount. Provides that no additional service credit may be accrued and no automatic increase in a retirement annuity shall be received. Provides that the pensionable salary of an active participant may not exceed that individual's pensionable salary as of the effective date. Provides that State-funded retirement systems shall establish self-directed retirement plans for all active participants and all employees hired on or after the effective date. Provides that all active participants shall have the option of participating in a self-directed retirement plan. Provides that these changes are controlling over any other law. Effective immediately.

Pension Note (Government Forecasting & Accountability)

The Commission’s actuary performed a cost study on a proposal that is substantially similar to HB 3303. That cost study showed a long-term reduction in State contributions for TRS only (through FY 2045) of $71.4 billion, and a reduction in FY 2014 unfunded liability of $27.4 billion. However, this cost study assumed no deviation from the current statutory funding target of amassing assets that are equal to 90% of DB liabilities by FY 2045. HB 3303 changes this target to 100% by FY 2045, and it specifies a level-dollar amortization approach. These two changes would result in greater long-term savings than those previously mentioned; however, an updated actuarial study would be required to capture the precise savings associated with the funding changes.

Actions 

Date	Chamber	Action
2/26/2013	House	Filed with the Clerk by Rep. Thomas Morrison
2/26/2013	House	First Reading
2/26/2013	House	Referred to Rules Committee
3/5/2013	House	Added Chief Co-Sponsor Rep. Jeanne M Ives
3/11/2013	House	Assigned to Personnel and Pensions Committee
3/20/2013	House	Pension Note Filed
3/22/2013	House	Rule 19(a) / Re-referred to Rules Committee
7/25/2013	House	Added Chief Co-Sponsor Rep. Barbara Wheeler
12/3/2014	House	Session Sine Die

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