Rep. Elaine Nekritz

Filed: 1/8/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 1. Short title. This Act may be cited as the
6Pension Review Commission Act.
7    Section 5. Pension Review Commission. There is created the
8Pension Review Commission (hereinafter "Commission") as an
9independent commission within the legislative branch of State
10government. The Commission shall consist of 8 Commissioners.
11Within 15 calendar days following the effective date of this
12amendatory Act of the 97th General Assembly, the Speaker of the
13House of Representatives, the President of the Senate, the
14Minority Leader of the House of Representatives and the
15Minority Leader of the Senate (collectively "legislative
16leaders") shall each appoint 2 Commissioners.



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1    Commissioners shall be adults and residents of Illinois.
2Commissioners may not be persons required to be registered
3under the Lobbyist Registration Act. In the event of a vacancy,
4the respective appointing legislative leader shall appoint a
5new member to fill the vacancy within 15 calendar days after
6the vacancy. Commissioners will serve for the duration of the
7Commission's existence as defined in this Act of the 97th
8General Assembly. Commissioners shall serve without
10    The Commission may, without regard to the Personnel Code,
11employ and fix the compensation or remuneration of employees
12and contract for personal and professional services as it
13considers necessary or desirable, subject to appropriation.
14    The Commission on Government Forecasting and
15Accountability (COGFA) shall provide administrative support
16and assistance to the Commission, but COGFA shall not exercise
17any authority or control over the Commission or its employees
18or contractors.
19    Section 10. Standards.
20    (a) In meeting its responsibilities as set forth in this
21Act, the Commission may convene periodically as set forth in
22this Act to determine the changes to existing law necessary to
23ensure that the State Employee Retirement System (SERS), the
24General Assembly Retirement System (GARS), the State
25University Retirement System (SURS), and the Teacher's



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1Retirement System (TRS) will reach 100% actuarial funding for
2all then-existing liabilities not later than December 31, 2045,
3calculated and defined in full accordance with the applicable
4standards and guidelines of the Governmental Accounting
5Standards Board (GASB). The Commission will set forth its
6determinations in the form of a final report.
7    (b) In determining the necessary changes to existing law,
8the Commission shall consider the following factors:
9        1. the total amount of the existing unfunded
10    liabilities for the four retirement systems identified in
11    this Act;
12        2. the current and projected rates of growth in those
13    unfunded liabilities;
14        3. the current and future projected total required
15    annual State contributions to the retirement systems; for
16    purposes of this Act, "total required annual State
17    contribution to the retirement systems" is the sum of the
18    amounts that the State of Illinois must pay on an
19    annualized basis from general revenue funds and any other
20    fund source to the four retirement systems identified in
21    this Act, including the normal cost of benefits earned and
22    payment towards the interest and principal that comprise
23    the unfunded accrued liabilities, as prescribed under
24    current law;
25        4. the annual cost to the State attributable to
26    retirement benefits earned by members as a result of



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1    employment at entities other than State of Illinois;
2        5. the cost to the entities other than the State of
3    Illinois including but not limited to any unit of local
4    government attributable to retirement benefits earned by
5    members as a result of employment at entities other than
6    the State of Illinois;
7        6. the most costly components of the benefit structures
8    of the four retirement systems identified in this Public
9    Act, which apply or relate to any member of the four
10    retirement systems identified in this Act, irrespective of
11    whether the member is currently receiving retirement
12    benefits including, but not limited to the following:
13            a. the amounts of the cost of living adjustments
14        (COLA) to which members are entitled,
15            b. the definition of the salary basis on which the
16        calculation of the member's retirement benefit is
17        based, commonly known as the member's "Final Average
18        Compensation" (FAC) (or the equivalent thereof),
19            c. the methods and definitions that the retirement
20        systems to which this Act applies use to determine:
21        actuarial liability, normal cost, actuarially-required
22        annual contribution, unfunded actuarial liabilities,
23        asset valuation, and other such calculations.
24        7. the value of public employee pension benefits in
25    comparable states for similar positions of employment;
26        8. the value of retirement benefits for comparable



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1    services performed in the private sector in Illinois and
2    comparable states based on the responsibility and
3    discretion required in the position of employment;
4        9. the effect of inflation as defined and calculated by
5    the Bureau of Labor Statistics (BLS) of the United States
6    government upon retirement benefits earned by members of
7    the retirement systems to which this Act applies;
8        10. the amounts of employee contributions to the four
9    pension systems; and
10        11. the interests and welfare of the public and the
11    financial ability of the State to meet those costs.
12    Section 15. Public hearings; Commission report; General
13Assembly disapproval of report.
14    (a) The Commission shall conduct public hearings prior to
15filing its report. At the public hearings, the Commission shall
16allow interested persons to present their views and comments.
17The Commission may prescribe reasonable rules for the conduct
18of public hearings. The meetings of the Commission are subject
19to the Open Meetings Act.
20    (b) The Commission shall file a report including its
21determinations of changes to existing law, set forth in the
22form of a draft bill with the Clerk of the House of
23Representatives and the Secretary of Senate on April 30, 2013.
24The Commission may also file a report on April 30, July 1, and
25November 1 of any calendar year in which the Commission chooses



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1to submit a report. Upon submission the Clerk of the House and
2the Secretary of the Senate shall make reports available to the
3general public, including via the world wide web and other
4electronic means that are suitable.
5    (c) The General Assembly may disapprove the report of the
6Commission in whole within thirty (30) days after the report is
7filed by adoption of a resolution by a record vote of the
8majority of the members elected in each house directed to the
9Commission. Such resolution shall be binding upon the
10Commission. Adoption of any such resolution in this manner
11shall prevent the determinations set forth in the final report
12from becoming law.
13    (d) If both chambers of the General Assembly do not adopt a
14resolution of disapproval in accordance with the provisions of
15subsection (c) of this Section, the provisions of the report
16making changes to existing law shall take effect and become
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".