Senate Sponsors: MADIGAN,R. House Sponsors: HARTKE-CAPPARELLI Short description: PEN CD-UNIVERSITIES-TECHNICAL Synopsis of Bill as introduced: Amends the Universities Article of the Pension Code. In a Section on retirement annuities, corrects an incorrect cross reference. Effective immediately. PENSION IMPACT NOTE SB 667 has no fiscal impact. PENSION IMPACT NOTE, ENGROSSED No change from previous note. HOUSE AMENDMENT NO. 1. Deletes reference to: 40 ILCS 5/15-136 Adds reference to: 35 ILCS 200/18-185 40 ILCS 5/2-117.4 new 40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132 40 ILCS 5/7-141.1 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171 40 ILCS 5/9-134.3 new 40 ILCS 5/14-105.1 from Ch. 108 1/2, par. 14-105.1 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-113.2 from Ch. 108 1/2, par. 15-113.2 40 ILCS 5/15-113.3 from Ch. 108 1/2, par. 15-113.3 40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4 40 ILCS 5/15-113.7 from Ch. 108 1/2, par. 15-113.7 40 ILCS 5/15-125 from Ch. 108 1/2, par. 15-125 40 ILCS 5/15-136.2 from Ch. 108 1/2, par. 15-136.2 40 ILCS 5/15-143 from Ch. 108 1/2, par. 15-143 40 ILCS 5/15-153.2 from Ch. 108 1/2, par. 15-153.2 40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157 40 ILCS 5/15-167.2 from Ch. 108 1/2, par. 15-167.2 40 ILCS 5/15-168.1 new 40 ILCS 5/15-185 from Ch. 108 1/2, par. 15-185 40 ILCS 5/15-190 from Ch. 108 1/2, par. 15-190 40 ILCS 5/15-191 from Ch. 108 1/2, par. 15-191 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-140 from Ch. 108 1/2, par. 16-140 40 ILCS 5/18-112 from Ch. 108 1/2, par. 18-112 40 ILCS 5/15-144 rep. 30 ILCS 805/8.21 new Deletes everything. Amends the Illinois Pension Code to allow a former member of the General Assembly who transferred his credits under the State Employees' Retirement System to the General Assembly Retirement System to retransfer a portion of those credits back to the State Employees' Retirement System. Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Deletes provisions limiting the early retirement incentive program to once every 6 years. Provides that employees of the governing board of the Special Education District of Lake County must begin participating in the Fund as of July 1, 1997. Provides that current employees shall receive free credit for up to 5 years of their prior service with that employer, but employee contributions must be paid in order to receive credit for the remainder of that prior service. Provides that the school districts participating in a special education joint agreement created under Section 10-22.31 of the School Code that is a participating instrumentality may include their proportionate share of the employer contribution for current or prior service in the districts' IMRF tax levy. Amends the Property Tax Extension Limitation Law to exclude from the aggregate extension any amounts levied by school districts that participate in the Special Education District of Lake County to pay for their share of the District's IMRF costs. Amends the Cook County Article of the Pension Code to provide for a program of early retirement incentives. Also applies to the Cook County Forest Preserve District pension fund. Amends the State Universities Article of the Pension Code. Increases the System's authority to issue bonds, allowing up to $20,000,000 to be outstanding at any one time. Limits existing benefits by: (i) excluding certain earnings after June 30, 1997 from the calculation of the final rate of earnings; (ii) imposing additional requirements on return to service following a leave of absence; (iii) requiring a return to service within one year after discharge in order to obtain credit for military service; (iv) removing a provision allowing beneficiaries to elect to receive death benefits in multiple payments; and (v) limiting credit for unused sick leave. (Article 13, Section 5 of the Illinois Constitution may prevent these limitations from applying to certain current or former members.) Changes the definition of "effective rate of interest" by adding additional factors to be included in determining the rate, including the desirability of minimizing volatility in the rate from year to year; states that the change is a clarification of existing law. Changes provisions relating to the calculation of interest when purchasing military service credit. Grants the Secretary of the Board the power to issue subpoenas. Allows annuitants and beneficiaries to authorize withholding from their annuities and benefits. Allows the System to pay benefits to the trustee of a trust created for the benefit of a minor or person under legal disability; provides that the System is not responsible for determining the validity of the trust and must conclusively rely on the representations of the trustee. Allows certain university firefighters and police officers to have their benefits based on their salary on the last day of service as a firefighter or police officer. Extends the deadline for early retirement without discount to September 1, 2002. Also makes technical changes. Amends the Downstate Teacher Article to extend to January 1, 1998 the deadline for certain surviving spouses who were married for at least 12 months, but not the 12 months immediately preceding the member's death, to apply for benefits as a dependent beneficiary. Allows up to 5 years of credit to be established for periods between January 1, 1959 and December 31, 1963 during which a teacher was employed by Southern Illinois University - Carbondale. Amends the Judges Article of the Pension Code. In the Section that provides for transfer of State employee and teacher credits to the Judges Retirement System, provides that a judge who was legal adviser to the State Board of Education can transfer up to 11 years of these credits at a reduced cost and at a reduced rate of interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. PENSION NOTE, H-AM 1 SB 667 would have little or no fiscal impact on the bill. FISCAL NOTE, H-AM 1 (Economic & Fiscal Comm.) SB 667 impacts numerous pension systems and local gov't's. HOUSE AMENDMENT NO. 2. Adds reference to: 35 ILCS 200/18-185 40 ILCS 5/1-113 from Ch. 108 1/2, par. 1-113 40 ILCS 5/2-110 from Ch. 108 1/2, par. 2-110 40 ILCS 5/2-117.4 new 40 ILCS 5/3-110.2 from Ch. 108 1/2, par. 3-110.2 40 ILCS 5/4-108.1 from Ch. 108 1/2, par. 4-108.1 40 ILCS 5/5-230 from Ch. 108 1/2, par. 5-230 40 ILCS 5/6-224 from Ch. 108 1/2, par. 6-224 40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132 40 ILCS 5/7-139.1 from Ch. 108 1/2, par. 7-139.1 40 ILCS 5/7-141.1 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171 40 ILCS 5/8-138 from Ch. 108 1/2, par. 8-138 40 ILCS 5/8-138.3 new 40 ILCS 5/8-150.1 from Ch. 108 1/2, par. 8-150.1 40 ILCS 5/8-154 from Ch. 108 1/2, par. 8-154 40 ILCS 5/8-159 from Ch. 108 1/2, par. 8-159 40 ILCS 5/8-226 from Ch. 108 1/2, par. 8-226 40 ILCS 5/8-226.1 from Ch. 108 1/2, par. 8-226.1 40 ILCS 5/9-121.1 from Ch. 108 1/2, par. 9-121.1 40 ILCS 5/9-134.3 new 40 ILCS 5/10-104.1 from Ch. 108 1/2, par. 10-104.1 40 ILCS 5/11-125.1 from Ch. 108 1/2, par. 11-125.1 40 ILCS 5/11-133.2 new 40 ILCS 5/11-134 from Ch. 108 1/2, par. 11-134 40 ILCS 5/11-145.1 from Ch. 108 1/2, par. 11-145.1 40 ILCS 5/11-149 from Ch. 108 1/2, par. 11-149 40 ILCS 5/11-154 from Ch. 108 1/2, par. 11-154 40 ILCS 5/11-215 from Ch. 108 1/2, par. 11-215 40 ILCS 5/12-127.1 from Ch. 108 1/2, par. 12-127.1 40 ILCS 5/13-801 from Ch. 108 1/2, par. 13-801 40 ILCS 5/14-103.04 from Ch. 108 1/2, par. 14-103.0 40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104 40 ILCS 5/14-104.10 new 40 ILCS 5/14-105.1 from Ch. 108 1/2, par. 14-105.1 40 ILCS 5/14-105.3 from Ch. 108 1/2, par. 14-105.3 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-113.2 from Ch. 108 1/2, par. 15-113.2 40 ILCS 5/15-113.3 from Ch. 108 1/2, par. 15-113.3 40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4 40 ILCS 5/15-113.7 from Ch. 108 1/2, par. 15-113.7 40 ILCS 5/15-125 from Ch. 108 1/2, par. 15-125 40 ILCS 5/15-134.2 from Ch. 108 1/2, par. 15-134.2 40 ILCS 5/15-136.2 from Ch. 108 1/2, par. 15-136.2 40 ILCS 5/15-143 from Ch. 108 1/2, par. 15-143 40 ILCS 5/15-153.2 from Ch. 108 1/2, par. 15-153.2 40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157 40 ILCS 5/15-167.2 from Ch. 108 1/2, par. 15-167.2 40 ILCS 5/15-168.1 new 40 ILCS 5/15-185 from Ch. 108 1/2, par. 15-185 40 ILCS 5/15-190 from Ch. 108 1/2, par. 15-190 40 ILCS 5/15-191 from Ch. 108 1/2, par. 15-191 40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127 40 ILCS 5/16-131.1 from Ch. 108 1/2, par. 16-131.1 40 ILCS 5/16-140 from Ch. 108 1/2, par. 16-140 40 ILCS 5/17-114.1 from Ch. 108 1/2, par. 17-114.1 40 ILCS 5/17-116.4 40 ILCS 5/18-112 from Ch. 108 1/2, par. 18-112 40 ILCS 5/18-112.1 from Ch. 108 1/2, par. 18-112.1 40 ILCS 5/15-144 rep. 30 ILCS 805/8.21 new Deletes everything. Amends the Illinois Pension Code. In the General Provisions Article, expands the authority of the Cook County pension fund to invest in securities of foreign and domestic corporations. In the General Assembly Article, allows both current and former members to establish and reinstate service credits in other public pension funds and to transfer those credits to the General Assembly Retirement System without payment of the corresponding employer contributions, until June 1, 1998. Allows a former member of the General Assembly who transferred his or her credits under the State Employees' Retirement System to the General Assembly Retirement System to retransfer a portion of those credits back to the State Employees' Retirement System. In the Illinois Municipal Retirement Fund (IMRF) Article, deletes provisions limiting the early retirement incentive program to once every 6 years. Provides that employees of the governing board of the Special Education District of Lake County must begin participating in the Fund as of July 1, 1997. Provides that current employees shall receive free credit for up to 5 years of their prior service with that employer, but employee contributions must be paid in order to receive credit for the remainder of that prior service. Provides that the school districts participating in a special education joint agreement created under Section 10-22.31 of the School Code that is a participating instrumentality may include their proportionate share of the employer contribution for current or prior service in the districts' IMRF tax levy. Also amends the Property Tax Extension Limitation Law to exclude from the aggregate extension any amounts levied by school districts that participate in the Special Education District of Lake County to pay for their share of the District's IMRF costs. Amends the Chicago Municipal and Laborer Articles of the Pension Code. Increases the minimum retirement annuity. Provides for retirement at age 50 with 30 years of service. Eliminates the age discount for employees who retire at age 55 with 25 years of service. Increases the minimum widow's annuity and allows certain widows to elect to receive 50% of the deceased employee's retirement annuity instead of a widow's annuity. Increases the child's annuity and removes the combined family maximum for certain persons currently eligible for child's annuities. Removes the maximum dollar amount limitation on widow's annuities for widows of employees who died before January 23, 1987; requires repayment of any refund of excess widow's annuity contributions, plus interest. Allows certain periods for which contributions have been paid to be counted as service for ordinary disability purposes. Provides a program of early retirement incentives for employees who retire on or before July 2, 1998. Makes other changes. Amends the Cook County Article of the Pension Code to provide for a program of early retirement incentives. Also applies to the Cook County Forest Preserve District pension fund. Amends the State Employee Article of the Pension Code to authorize participation by employees of the Illinois Development Finance Authority. Authorizes purchase of credit for prior service with the Authority or its predecessor agency; requires the applicant to pay both employee and employer contributions plus interest. Allows a person who rendered contractual services to a member of the General Assembly as a worker providing constituent services to persons in the member's district to establish creditable service for up to 8 years of those contractual services. Amends the State Universities Article of the Pension Code. Increases the System's authority to issue bonds, allowing up to $20,000,000 to be outstanding at any one time. Limits existing benefits by: (i) excluding certain earnings after June 30, 1997 from the calculation of the final rate of earnings; (ii) imposing additional requirements on return to service following a leave of absence; (iii) requiring a return to service within one year after discharge in order to obtain credit for military service; (iv) removing a provision allowing beneficiaries to elect to receive death benefits in multiple payments; and (v) limiting credit for unused sick leave. (Article 13, Section 5 of the Illinois Constitution may prevent these limitations from applying to certain current or former members.) Changes the definition of "effective rate of interest" by adding additional factors to be included in determining the rate, including the desirability of minimizing volatility in the rate from year to year; states that the change is a clarification of existing law. Changes provisions relating to the calculation of interest when purchasing military service credit. Grants the Secretary of the Board the power to issue subpoenas. Allows annuitants and beneficiaries to authorize withholding from their annuities and benefits. Allows the System to pay benefits to the trustee of a trust created for the benefit of a minor or person under legal disability; provides that the System is not responsible for determining the validity of the trust and must conclusively rely on the representations of the trustee. Allows certain university firefighters and police officers to have their benefits based on their salary on the last day of service as a firefighter or police officer. Extends the deadline for early retirement without discount to September 1, 2002. Also makes technical changes. Amends the Downstate Teacher Article to extend to January 1, 1998 the deadline for certain surviving spouses who were married for at least 12 months, but not the 12 months immediately preceding the member's death, to apply for benefits as a dependent beneficiary. Allows up to 5 years of credit to be established for periods between January 1, 1959 and December 31, 1963 during which a teacher was employed by Southern Illinois University - Carbondale. Amends the Chicago Teacher Article of the Pension Code to allow a person who began receiving early retirement benefits in 1994 to purchase additional service credit for up to 3 weeks in 1968 during which the person was prevented from working due to civil unrest. Requires an additional employee contribution. Makes payment of the resulting increase in retirement annuity payable retroactively from the date of retirement. Amends the Judges Article of the Pension Code to allow a former judge to transfer service credits from the State Employees' Retirement System to the Judges Retirement System. In the Section that provides for transfer of State employee and teacher credits to the Judges Retirement System, provides that a judge who was legal adviser to the State Board of Education can transfer up to 11 years of these credits at a reduced cost and at a reduced rate of interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. PENSION NOTE, H-AM 2 General Assembly: Fiscal impact is expected to be minimal. Chicago Municipal: Total unfunded liabilities = $584.3; total annual cost = $56.8; total tax levy = .73. Chicago Laborers: Total unfunded liabilities = $89.9; total annual cost = $8.5; total tax levy = .75. Illinois Municipal: Fiscal impact is expected to be minimal. Cook County: Fiscal impact is not known at this time; costs are to be borne by the Cook County Board. State Employees: Fiscal impact is expected to be minor. State Universities: Fiscal impact is expected to be significant on the accrued liabilities of the System. Downstate Teachers: Fiscal impact is expected to be neutral or minimal. Chicago Teachers: Fiscal impact is expected to be minimal. Judges: Fiscal impact is estimated to be minor. STATE DEBT NOTE, H-AM 2 SB667 contains various changes, some of which would have a im- pact on the system or fund amended. FISCAL NOTE, H-AM 1 & 2 (Economic and Fiscal Comm.) No change from previous note. STATE MANDATES FISCAL NOTE, H-AM 2 (DCCA) Creates a personnel mandate for which reimbursement would nor- mally be required. However, the State Mandates Act is amended to relieve the State of reimbursement liability. Those costs which can be estimated total $65.3 million. HOUSE AMENDMENT NO. 3. Adds reference to: 40 ILCS 5/2-123 from Ch. 108 1/2, par. 2-123 Amends the General Assembly Article of the Pension Code. Allows a former member of the General Assembly to reinstate service credits that have been forfeited by acceptance of a refund, without a return to service. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 3 SENATE - 0 END OF INQUIRY Full Text Bill Status