101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2240

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-127  from Ch. 108 1/2, par. 17-127
40 ILCS 5/17-142.1  from Ch. 108 1/2, par. 17-142.1

    Amends the Chicago Teacher Article of the Illinois Pension Code. Beginning in 2020, requires (rather than allows) the Board of Trustees to pay to each recipient of a service retirement, disability retirement, or survivor's pension an amount to be determined by the Board, which shall represent partial or complete reimbursement (rather than partial) for the cost of the recipient's health insurance coverage. Provides that beginning in 2020, the total amount of payments for each year shall equal $65,000,000 plus any amount that was authorized or required to be paid in the preceding year but was not actually paid by the Board, including any interest earned thereon. Makes conforming changes. Effective immediately.


LRB101 04973 RPS 49982 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2240LRB101 04973 RPS 49982 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 17-127 and 17-142.1 as follows:
 
6    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
7    Sec. 17-127. Financing; revenues for the Fund.
8    (a) The revenues for the Fund shall consist of: (1) amounts
9paid into the Fund by contributors thereto and from employer
10contributions and State appropriations in accordance with this
11Article; (2) amounts contributed to the Fund by an Employer;
12(3) amounts contributed to the Fund pursuant to any law now in
13force or hereafter to be enacted; (4) contributions from any
14other source; and (5) the earnings on investments.
15    (b) The General Assembly finds that for many years the
16State has contributed to the Fund an annual amount that is
17between 20% and 30% of the amount of the annual State
18contribution to the Article 16 retirement system, and the
19General Assembly declares that it is its goal and intention to
20continue this level of contribution to the Fund in the future.
21    (c) Beginning in State fiscal year 1999, the State shall
22include in its annual contribution to the Fund an additional
23amount equal to 0.544% of the Fund's total teacher payroll;

 

 

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1except that this additional contribution need not be made in a
2fiscal year if the Board has certified in the previous fiscal
3year that the Fund is at least 90% funded, based on actuarial
4determinations. These additional State contributions are
5intended to offset a portion of the cost to the Fund of the
6increases in retirement benefits resulting from this
7amendatory Act of 1998.
8    (d) In addition to any other contribution required under
9this Article, including the contribution required under
10subsection (c), the State shall contribute to the Fund the
11following amounts:
12        (1) For State fiscal year 2018, the State shall
13    contribute $221,300,000 for the employer normal cost for
14    fiscal year 2018 and the amount allowed under paragraph (3)
15    of Section 17-142.1 of this Code to defray health insurance
16    costs. Funds for this paragraph (1) shall come from funds
17    appropriated for Evidence-Based Funding pursuant to
18    Section 18-8.15 of the School Code.
19        (2) Beginning in State fiscal year 2019, the State
20    shall contribute for each fiscal year an amount to be
21    determined by the Fund, equal to the employer normal cost
22    for that fiscal year, plus the amount under allowed
23    pursuant to paragraph (3) of Section 17-142.1 to defray
24    health insurance costs.
25    (e) The Board shall determine the amount of State
26contributions required for each fiscal year on the basis of the

 

 

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1actuarial tables and other assumptions adopted by the Board and
2the recommendations of the actuary. On or before November 1 of
3each year, beginning November 1, 2017, the Board shall submit
4to the State Actuary, the Governor, and the General Assembly a
5proposed certification of the amount of the required State
6contribution to the Fund for the next fiscal year, along with
7all of the actuarial assumptions, calculations, and data upon
8which that proposed certification is based.
9    On or before January 1 of each year, beginning January 1,
102018, the State Actuary shall issue a preliminary report
11concerning the proposed certification and identifying, if
12necessary, recommended changes in actuarial assumptions that
13the Board must consider before finalizing its certification of
14the required State contributions.
15    (f) On or before January 15, 2018 and each January 15
16thereafter, the Board shall certify to the Governor and the
17General Assembly the amount of the required State contribution
18for the next fiscal year. The certification shall include a
19copy of the actuarial recommendations upon which it is based
20and shall specifically identify the Fund's projected employer
21normal cost for that fiscal year. The Board's certification
22must note any deviations from the State Actuary's recommended
23changes, the reason or reasons for not following the State
24Actuary's recommended changes, and the fiscal impact of not
25following the State Actuary's recommended changes on the
26required State contribution.

 

 

HB2240- 4 -LRB101 04973 RPS 49982 b

1    For the purposes of this Article, including issuing
2vouchers, and for the purposes of subsection (h) of Section 1.1
3of the State Pension Funds Continuing Appropriation Act, the
4State contribution specified for State fiscal year 2018 shall
5be deemed to have been certified, by operation of law and
6without official action by the Board or the State Actuary, in
7the amount provided in subsection (c) and subsection (d) of
8this Section.
9    (g) For State fiscal year 2018, the State Board of
10Education shall submit vouchers, as directed by the Board, for
11payment of State contributions to the Fund for the required
12annual State contribution under subsection (d) of this Section.
13These vouchers shall be paid by the State Comptroller and
14Treasurer by warrants drawn on the amount appropriated to the
15State Board of Education from the Common School Fund in Section
165 of Article 97 of Public Act 100-21. If State appropriations
17for State fiscal year 2018 are less than the amount lawfully
18vouchered under this subsection, the difference shall be paid
19from the Common School Fund under the continuing appropriation
20authority provided in Section 1.1 of the State Pension Funds
21Continuing Appropriation Act.
22    (h) For State fiscal year 2018, the Board shall submit
23vouchers for the payment of State contributions to the Fund for
24the required annual State contribution under subsection (c) of
25this Section. Beginning in State fiscal year 2019, the Board
26shall submit vouchers for payment of State contributions to the

 

 

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1Fund for the required annual State contribution under
2subsections (c) and (d) of this Section. These vouchers shall
3be paid by the State Comptroller and Treasurer by warrants
4drawn on the funds appropriated to the Fund for that fiscal
5year. If State appropriations to the Fund for the applicable
6fiscal year are less than the amount lawfully vouchered under
7this subsection, the difference shall be paid from the Common
8School Fund under the continuing appropriation authority
9provided in Section 1.1 of the State Pension Funds Continuing
10Appropriation Act.
11(Source: P.A. 100-465, eff. 8-31-17.)
 
12    (40 ILCS 5/17-142.1)  (from Ch. 108 1/2, par. 17-142.1)
13    Sec. 17-142.1. To defray health insurance costs. To provide
14for the partial reimbursement of health insurance costs.
15    (1) On the first day of September of each year, beginning
16in 1988 through 2019, the Board may, by separate warrant, pay
17to each recipient of a service retirement, disability
18retirement or survivor's pension an amount to be determined by
19the Board, which shall represent partial reimbursement for the
20cost of the recipient's health insurance coverage.
21    On the first day of September of each year, beginning in
222020, the Board shall, by separate warrant, pay to each
23recipient of a service retirement, disability retirement, or
24survivor's pension an amount to be determined by the Board,
25which shall represent partial or complete reimbursement for the

 

 

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1cost of the recipient's health insurance coverage.
2    (2) In lieu of the annual payment under authorized in
3subdivision (1), for pensioners enrolled in the Fund's regular
4health care deduction plans, the Fund may pay the health
5insurance premium reimbursement on a monthly rather than annual
6basis, at the percentage rate established from time to time by
7the Board. If the Board so directs, these monthly payments may
8be made in the form of a direct payment of premium and a
9reduction in the amount deducted from the annuity, rather than
10in the form of reimbursement by separate warrant.
11    (3) Until 2020, total Total payments under this Section in
12any year may not exceed $65,000,000 plus any amount that was
13authorized to be paid under this Section in the preceding year
14but was not actually paid by the Board, including any interest
15earned thereon.
16    Beginning in 2020, total payments under this Section in any
17year shall be equal to $65,000,000 plus any amount that was
18authorized or required to be paid under this Section in the
19preceding year but was not actually paid by the Board,
20including any interest earned thereon.
21    (4) Until 2020, the The total amount of payments under this
22Section in any year may not exceed 75% of the total cost of
23health insurance coverage in that year for all the recipients
24who receive payments authorized by this Section in that year.
25(Source: P.A. 93-677, eff. 6-28-04.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.