SJ0124 96TH GENERAL ASSEMBLY

SJ0124 LRB096 21737 AMC 39427 r

SENATE JOINT RESOLUTION

WHEREAS, Social Security coverage has never been available for the vast majority of members in the State-funded pension systems; and

WHEREAS, Seventy-eight percent of participants in Illinois' public pension systems do not receive Social Security; and

WHEREAS, Members of these State-funded pension systems who have earned Social Security coverage through past employment have these benefits reduced up to 66% by the Windfall Elimination Provision or the Government Pension Offset; and

WHEREAS, The General Assembly is considering a reduction in pension benefits for future members of these State-funded pension systems; and

WHEREAS, Currently, the normal cost for new members of the retirement systems is below the cost of providing Social Security; and

WHEREAS, The cost of the current benefit plan is lower than what is paid in the private sector for Social Security; and

WHEREAS, Social Security is a 50-50 pick-up between employees and employers; and

WHEREAS, Current pension reduction proposals would require new members to pick up 80% to 90% of the cost of their retirement; and

WHEREAS, Retirement security for members of State-funded pension systems that are not participating in Social Security is solely dependent on the level of the benefits provided by these systems; and

WHEREAS, It is prudent for the State of Illinois to study the impact of mandating Social Security for all public employees in State-funded pension systems; and

WHEREAS, The study shall compare the cost of mandating Social Security for new members and the normal cost of those new members; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN, that the Commission on Government Forecasting and Accountability shall conduct a study to analyze the cost of mandating Social Security coverage for all members of State-funded pension systems; and be it further

RESOLVED, That the Commission on Government Forecasting and Accountability shall compare the normal cost of the benefit plan offered to current and future members of State-funded pension systems to the cost of Social Security coverage; and be it further

RESOLVED, That the Commission on Government Forecasting and Accountability shall present the results of this study to the leaders of each legislative caucus and the Governor's office by May 7, 2010; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to the Commission on Government Forecasting and Accountability.