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. The Pension Review
8Commission, hereinafter called the "Commission", is hereby
9created and shall be comprised of eight Commissioners. Within
10fifteen calendar days following the effective date of this
11amendatory Act of the 97th General Assembly, the Speaker of the
12House of Representatives, the President of the Senate, the
13Minority Leader of the House of Representatives and the
14Minority Leader of the Senate shall each appoint two
16    Commissioners shall be at least 18 years of age, reside



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1within Illinois, and shall not be required to register under
2the Lobbyist Registration Act. In the event of a vacancy, the
3respective appointing legislative leader shall appoint a new
4member to fill the vacancy within fifteen calendar days after
5the vacancy.
6    The Commission on Government Forecasting and
7Accountability (COGFA) shall provide administrative support
8and assistance to the Commission.
9    Section 10. Standards for Delegation of Authority.
10    (a) The Commission shall determine the changes to law
11necessary to ensure that the State Employee Retirement System,
12the General Assembly Retirement System, the State University
13Retirement System, and the Teacher's Retirement System will
14reach 100% actuarial funding for all then-existing liabilities
15not later than December 31, 2045, calculated and defined in
16full accordance with the applicable standards and guidelines of
17the Governmental Accounting Standards Board.
18    (b) In determining the necessary changes to existing law,
19the Commission shall consider the following factors:
20        1. the total amount of the existing unfunded
21    liabilities for the four retirement systems identified in
22    this Act;
23        2. the current and projected rates of growth in those
24    unfunded liabilities;
25        3. the current and future projected total required



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1    annual State contributions to the retirement systems; for
2    purposes of this Act, "total required annual State
3    contribution to the retirement systems" is the sum of the
4    amounts that the State of Illinois must pay on an
5    annualized basis from general revenue funds and any other
6    fund source to the four retirement systems identified in
7    this Public Act, including the normal cost of benefits
8    earned and payment towards the interest and principal that
9    comprise the unfunded accrued liabilities, as prescribed
10    under current law;
11        4. the annual cost to the State attributable to
12    retirement benefits earned by members as a result of
13    employment at entities other than State of Illinois;
14        5. the cost to the entities other than the State of
15    Illinois including but not limited to any unit of local
16    government attributable to retirement benefits earned by
17    members as a result of employment at entities other than
18    the State of Illinois;
19        6. the most costly components of the benefit structures
20    of the four retirement systems identified in this Public
21    Act, which apply or relate to any member of the four
22    retirement systems identified in this Act, irrespective of
23    whether the member is currently receiving retirement
24    benefits including, but not limited to the following:
25            a. the amounts of the cost of living adjustments
26        (COLA) to which members are entitled,



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1            b. the definition of the salary basis on which the
2        calculation of the member's retirement benefit is
3        based, commonly known as the member's "Final Average
4        Compensation" (FAC) (or the equivalent thereof),
5            c. the methods and definitions that the retirement
6        systems to which this Act applies use to determine:
7        actuarial liability, normal cost, actuarially-required
8        annual contribution, unfunded actuarial liabilities,
9        asset valuation, and other such calculations.
10        7. the value of public employee pension benefits in
11    comparable states for similar positions of employment;
12        8. the value of retirement benefits for comparable
13    services performed in the private sector in Illinois and
14    comparable states based on the responsibility and
15    discretion required in the position of employment;
16        9. the effect of inflation as defined and calculated by
17    the Bureau of Labor Statistics (BLS) of the United States
18    government upon retirement benefits earned by members of
19    the retirement systems to which this Public Act applies;
20        10. the amounts of employee contributions to the four
21    pension systems; and
22        11. the interests and welfare of the public and the
23    financial ability of the State to meet those costs.
24    Section 15. Public Hearings. The Commission shall conduct
25public hearings prior to filing its report. Notice of hearings



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1shall be made on the General Assembly website and by methods
2deemed appropriate by the Commission. All interested persons
3shall be provided with an opportunity to comment. Any documents
4submitted to the Commission by those seeking to comment shall
5be deemed public records under the Freedom of Information Act.
6    Section 20. Commission Report. The Commission shall
7prepare a report, set forth in the form of a bill, no later
8than April 30, 2013. The report shall be submitted to the Clerk
9of the House and Secretary of the Senate, and shall be made
10available on the General Assembly website. The Commission may
11also file a report on April 30 and November 1 of any calendar
12year in which the Commission chooses to submit a report.
13    Section 25. General Assembly Disapproval of the Report.
14The General Assembly may disapprove the report of the
15Commission in whole within thirty legislative days after the
16report is filed by adoption of a joint resolution by a record
17vote of the majority of the members elected in each house. If
18the General Assembly does not adopt a joint resolution
19disapproving of the report, the Speaker of the House of
20Representatives and the President of the Senate shall certify
21the bill and it shall be presented to the Governor in
22accordance with Article 4, Section 9(a) of the Illinois
23Constitution. The Governor shall sign the bill and it shall
24become law. The bill shall not be certified if the General



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1Assembly adopts a joint resolution disapproving of the report.
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".