92nd General Assembly
Summary of HB0965
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House Sponsors:
GRANBERG-LYONS,EILEEN.

Short description: 
PEN CD-IMRF-COMPOUND 3% INCRS                                              

Synopsis of Bill as introduced:
        Amends the Illinois Municipal  Retirement  Fund  Article  of  the      
   Illinois   Pension   Code.    Compounds  the  3%  annual  increase  in      
   retirement, surviving spouse, and disability annuities, beginning with      
   the increase due  on  January  1,  2002.    Specifies  that  the  last      
   supplemental  benefit payment (13th check) is payable on July 1, 2001.      
   Amends the  State  Mandates  Act  to  require  implementation  without      
   reimbursement. Effective immediately.                                       
          PENSION IMPACT NOTE, REVISED (Illinois Pension Law Commission)       
          According to IMRF, providing compounded annual increases to all      
          current and future beneficiaries would increase the accrued          
          liabilities of the Fund by $780.9 million ($724.7 million for        
          regular employees and $56.2 million for SLEP employees). The         
          corresponding increase in average annual cost (including nor-        
          moral cost) is estimated to be 1.49% of payroll for regular          
          IMRF employers and 2.77% of payroll for SLEP employers, assum-       
          ing amortization of the increase in accrued liabilities over 30      
          years. This cost would be reduced by a savings of 0.62% of           
          payroll from discontinuing the supplemental benefit payment.         
          Therefore, the total annual cost associated with HB 0965 is          
          0.87% of payroll for regular IMRF employers and 2.15% of             
          payroll for SLEP employers. The required contributions (as           
          percent of payroll) may vary widely among employers.                 
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


   END OF INQUIRY 



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