Illinois General Assembly - Bill Status for HB4045

Amends the Illinois Pension Code. In Articles 2, 14, 15, 16, and 17, requires active Tier 1 employees to elect either (i) to have automatic annual increases in retirement and survivor's annuities delayed and reduced or (ii) to maintain current benefits except for additional limits on pensionable salary; provides additional benefits to persons electing item (i). Makes funding changes, including shifting certain costs to employers under Articles 15 and 16. Restricts participation in the General Assembly Retirement System to persons who became participants before the effective date. In Articles 14, 15, and 16, requires those Systems to offer an optional accelerated benefit payment to certain members in lieu of receiving a pension. Provides separate benefits for certain persons who become participants under Article 14, 15, or 16. Requires those retirement systems to establish a defined contribution plan for certain members; in Articles 7, 8, 9, 10, 11, 12, 13, and 17, establishes similar benefits if the governing body of the unit of local government adopts those benefits. In Article 17, requires the State to contribute $215,200,000 for fiscal year 2017. Provides a continuing appropriation for the Article 17 State contribution and for certain consideration payments. Amends various Acts to make conforming changes. Provides for the transfer of certain amounts to the Pension Stabilization Fund. Amends the Illinois Educational Labor Relations Act and the Illinois Public Labor Relations Act to prohibit bargaining and interest arbitration regarding certain changes made by the amendatory Act; exempts certain existing agreements. Makes other changes. Includes severability provisions. Effective immediately.

Replaces everything after the enacting clause. Amends the General Provisions Article of the Illinois Pension Code. Provides that the Board of any pension fund or retirement system may authorize active Tier 1 employees to elect to have automatic annual increases in retirement and survivor's annuities delayed and reduced. Provides that a Tier 1 employee who makes that election is entitled to have contributions reduced to a specified rate and to receive a consideration payment of 10% of contributions made prior to the election. Provides separate benefits for persons who, on or after July 1, 2018, first become participants or members under the State Universities or Downstate Teachers Article or noncovered participants under the State Employees Article. Authorizes persons who first become members or participants of those Systems on or after July 1, 2018 to elect the Tier 2 benefits in lieu of those separate benefits. Authorizes Tier 2 members to elect those separate benefits in lieu of the Tier 2 benefits. Requires those retirement systems to establish a voluntary defined contribution plan for certain Tier 1 members. In the Chicago Municipal, Cook County, Cook County Forest Preserve, Chicago Laborers, Chicago Park District, and Chicago Teachers Articles, establishes similar benefits if the governing body of the unit of local government adopts those benefits by resolution or ordinance. In the State Employee, State Universities, and Downstate Teachers Articles, authorizes those Systems to calculate the net present value of the pension benefits for certain inactive members and to offer those members the opportunity to elect to receive an accelerated pension benefit payment equal to 70% of the net present value of their pension benefits in lieu of receiving any pension benefit. In the State Universities and Downstate Teachers Articles, shifts certain costs to the local employer. Repeals certain provisions related to defined contributions plans under Public Act 98-599, which has been declared unconstitutional. Amends the State Employees Group Insurance Act of 1971 to make a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Makes other changes.

×