House Sponsors: SMITH,MICHAEL. Short description: PEN CD-TEACHERS-RULE OF 85 Synopsis of Bill as introduced: Amends the Downstate and Chicago Teacher Articles of the Illinois Pension Code. Allows retirement without discount at any age which, when added to the number of years of the member's total creditable service, equals at least 85. In the Chicago Teacher Article, makes the initial annual increase in retirement annuity begin to accrue from the date of retirement rather than the 61st birthday. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. PENSION NOTE (Pension Laws Commission) According to TRS, HB 1739 would increase the accrued liability of TRS by an estimated $1.0 billion. The estimated increase in FY 2002 total annual costs is $2.5 million, or 0.10% of pay- roll. From 2010 through 2045, it is estimated the required employer contribution would increase from 17.20% to 19.48%, or 2.28% of payroll. This percentage of payroll amounts to increased employer contributions of $193.9 million in FY 2010, and will grow commensurate with payroll. According to the Commission's actuary, HB 1739 would increase the accrued lia- bility of CTRS by $117.9 million, and the annual cost by 0.66% of payroll. As the employer (the Chicago Board of Education) is not required to contribute to the Fund when the funded ratio is above 90%, no additional employer contributions would be re- quired for several years. The Chicago Teachers' Pension Fund currently has a funded ratio of 96.7%, and the ratio is expec- ted to stay above 90% until FY 2018. 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 Full Text Bill Status