PENSION-CHI MUN-WIDOW'S ANUITY Senate SponsorsSen. Jeffrey M. Schoenberg-Martin A. Sandoval House Sponsors(Rep. Robert S. Molaro-Calvin L. Giles) 6/1/2005SenatePublic Act . . . . . . . . . 94-0004 40 ILCS 5/8-152from Ch. 108 1/2, par. 8-15240 ILCS 5/8-152.1 new30 ILCS 805/8.29 newAmends the Chicago Municipal Article of the Illinois Pension Code. Provides that if (1) a member has a spouse who would have qualified for a minimum annuity for widows at the time of the member's retirement, (2) the qualifying spouse dies, (3) the member subsequently remarries, and (4) the member does not receive a refund of widow's annuity deductions, then the member's widow shall be entitled to a widow's annuity if (i) the member dies after May 1, 2004 and before November 1, 2004 and (ii) the widow was married to the member for at least the last 10 years prior to the member's death. Provides that if a widow who is receiving a widow's annuity under the provisions of this amendatory Act of the 94th General Assembly remarries, that widow's annuity shall be terminated. Requires application on or before July 1, 2006. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.Pension Note (Commission on Gov't Forecasting and Accountability) The fiscal impact of Senate Bill 27 cannot be calculated, but is estimated to be very minor as only a small number of widows would be affected by the bill.Balanced Budget Note (H-AM 1) (Gov. Office of Management & Budget) The Governor's Office of Management and Budget estimates that the sum certain contribution for FY06 is $1.038 billion. In addition, the pension bond payment is also to be paid in FY06 in the amount of $496 million, for a total pension contribution of $1.534 billion.Fiscal Note (H-AM 1) (Gov. Office of Management & Budget) The Governor's Office of Management and Budget estimates that the sum certain contribution for FY06 is $1.038 billion. In addition, the pension bond payment is also to be paid in FY06 in the amount of $496 million, for a total pension contribution of $1.534 billion.Judicial Note (H-AM 1) (Admin. Office of the Illinois Courts) Would neither increase nor decrease the number of judges needed in the State.State Debt Impact Note (H-AM 1)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 1) would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.Pension Note (H-AM 1)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 1) reduces the required State contributions to the retirement systems by $1,077.9 million in FY 2006 and $1,031.6 million in FY 2007. Reducing contributions in FY 2006 and FY 2007 will result in larger required employer contributions for the remainder of the funding plan (FY 2008 - FY 2045). These increases in future required State contributions have not yet been calculated. The bill also makes several changes to the Pension Code which may reduce the growth in accrued liabilities. A reduction in the growth rate of the accrued liabilities will result in lower required annual State contributions over the life of the funding plan. The amount of the annual reductions has not been calculated.Home Rule Note (H-AM 1)(Dept. of Commerce and Economic Opportunity) Senate Bill 27 (H-AM 1) does not pre-empt home rule authority.State Mandates Fiscal Note (H-AM 1)(Dept. of Commerce and Economic Opportunity) Under the State Mandates Act, a "State mandate" means any State-initiated statutory or executive action that requires a unit of local government to establish, expand, or modify its activities in such a way as to necessitate additional expenditures from local revenues. Senate Bill 27 (H-AM 1) pertains to the various State pension systems. In the opinion of the Department of Commerce and Economic Opportunity, Senate Bill 27 (H-AM 1) does not create a State mandate in regard to units of local government that are not school districts. This note does not address provisions of the legislation pertaining to the Teachers' Retirement System. Because those provisions are related to school districts, they are therefore outside of DCEO's purview under the State Mandates Act.House Amendment No. 2 Adds reference to:40 ILCS 5/1A-201 new40 ILCS 5/2-124from Ch. 108 1/2, par. 2-12440 ILCS 5/2-134from Ch. 108 1/2, par. 2-13440 ILCS 5/2-162 new40 ILCS 5/14-108.340 ILCS 5/14-110from Ch. 108 1/2, par. 14-11040 ILCS 5/14-131from Ch. 108 1/2, par. 14-13140 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.0840 ILCS 5/14-152.1 new40 ILCS 5/15-125from Ch. 108 1/2, par. 15-12540 ILCS 5/15-136from Ch. 108 1/2, par. 15-13640 ILCS 5/15-155from Ch. 108 1/2, par. 15-15540 ILCS 5/15-165from Ch. 108 1/2, par. 15-16540 ILCS 5/15-198 new40 ILCS 5/16-128from Ch. 108 1/2, par. 16-12840 ILCS 5/16-133from Ch. 108 1/2, par. 16-13340 ILCS 5/16-133.2from Ch. 108 1/2, par. 16-133.240 ILCS 5/16-133.3from Ch. 108 1/2, par. 16-133.340 ILCS 5/16-152from Ch. 108 1/2, par. 16-15240 ILCS 5/16-158from Ch. 108 1/2, par. 16-15840 ILCS 5/16-176from Ch. 108 1/2, par. 16-17640 ILCS 5/16-203 new40 ILCS 5/17-116.1from Ch. 108 1/2, par. 17-116.140 ILCS 5/18-131from Ch. 108 1/2, par. 18-13140 ILCS 5/18-140from Ch. 108 1/2, par. 18-14040 ILCS 5/18-169 new30 ILCS 805/8.29 newDeletes everything. Amends the Illinois Pension Code. In the 5 State-funded retirement systems, places funding limitations on new benefit increases and sunsets them after 5 years. Also makes changes relating to the required State contributions. Specifies the required State contribution amounts for fiscal years 2006 and 2007. Recalculates the ramp for fiscal years 2008, 2009, and 2010. Requires recertification of the 2006 amounts. In the State Employee and Downstate Teacher Articles, deletes the accelerated amortization provisions for costs arising from the 2002 early retirement incentive program and rolls those costs into the calculation of the regular required State contribution. In the State Employee Article, makes changes relating to the eligibility of new employees of the Department of Corrections for the alternative formula. In the State Universities Article, provides for the State Comptroller (rather than the Board of the System) to determine the effective rate of interest for purposes of calculating the money-purchase formula. In the Downstate Teacher and State Universities Articles, in certain cases where a retiring member's retirement annuity is based on a salary increase in excess of 6% per year, requires the employer that granted the excess salary increase to make an additional contribution to the System. Also, eliminates the money-purchase formula for persons who first become participants on or after July 1, 2005. In the Downstate Teacher Article, extends the early retirement without discount option (ERO), with certain changes, to persons who retire after June 30, 2005. Requires all active members to pay an additional employee contribution for ERO purposes, and provides for refund of that contribution if the ERO option is not exercised. Requires a periodic actuarial evaluation of ERO costs and funding; directs the Commission on Government Forecasting and Accountability to recommend to the General Assembly any necessary adjustments to the required ERO employer and member contributions; and terminates the ERO if the General Assembly fails to act in response to those recommendations. In the Chicago Teacher Article, extends the early retirement without discount option (ERO), with certain changes, to persons who retire after June 30, 2005 and on or before June 30, 2010. In the Article on regulation of pension funds, creates an Advisory Commission on Pension Benefits. Directs the Commission to consider changing the age and service requirements, automatic annual increase benefits, and employee contribution rates of the State-funded retirement systems. Authorizes the Commission to request actuarial data from those retirement systems. Amends the State Mandates Act to require implementation without reimbursement. Includes a separate severability provision. Effective immediately.Balanced Budget Note (H-AM 2) (Gov. Office of Management & Budget) The Governor's Office of Management and Budget estimates that the sum certain contribution for FY06 is $938 billion. In addition, the pension bond payment is also to be paid in FY06 in the amount of $496 million, for a total pension contribution of $1.434 billion.Fiscal Note (H-AM 2) (Gov. Office of Management & Budget) The Governor's Office of Management and Budget estimates that the sum certain contribution for FY06 is $938 billion. In addition, the pension bond payment is also to be paid in FY06 in the amount of $496 million, for a total pension contribution of $1.434 billion.Judicial Note (H-AM 2) (Admin. Office of the Illinois Courts) Would neither increase nor decrease the number of judges needed in the State.State Mandates Fiscal Note (H-AM 2)(Dept. of Commerce and Economic Opportunity) Under the State Mandates Act, a "State mandate" means any State-initiated statutory or executive action that requires a unit of local government to establish, expand, or modify its activities in such a way as to necessitate additional expenditures from local revenues. Senate Bill 27 (H-AM 1) pertains to the various State pension systems. In the opinion of the Department of Commerce and Economic Opportunity, Senate Bill 27 (H-AM 1) does not create a State mandate in regard to units of local government that are not school districts. This note does not address provisions of the legislation pertaining to the Teachers' Retirement System. Because those provisions are related to school districts, they are therefore outside of DCEO's purview under the State Mandates Act.Home Rule Note (H-AM 2)(Dept. of Commerce and Economic Opportunity) Senate Bill 27 (H-AM 2) does not pre-empt home rule authority.Housing Affordability Impact Note (H-AM 2)(Housing Development Authority) SB 27 (H-AM 2) will have no effect on constructing, purchasing, owning, or selling a single-family residence. State Debt Impact Note (H-AM 2)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 2) would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.Pension Note (H-AM 2)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 2) reduces the required State contributions to the retirement systems by $1,177.9 million in FY 2006 and $1,131.6 million in FY 2007. Reducing contributions in FY 2006 and FY 2007 will also reduce contributions in FY 2008 and FY 2009. as those contributions are based in part on the FY 2007 contribution amounts. In addition, removing the separate ERI funding for SERS may result in lower contributions to SERS through FY 2015. Reducing contributions in the early years of a funding plan increases the contributions that will be required in later years. The FY 2008 through FY 2045 required State contributions have not yet been calculated. The bill also makes several changes to the Pension Code which may reduce the growth in accrued liabilities. A reduction in the growth rate of the accrued liabilities will result in lower required annual State contributions over the life of the funding plan. The amount of the annual reductions has not been calculated.Pension Note (H-AM 2)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 2) reduces the required State contributions to the retirement systems by $1,177.9 million in FY 2006 and $1,131.6 million in FY 2007. Reducing contributions in FY 2006 and FY 2007 will also reduce contributions in FY 2008 and FY 2009, as those contributions are based in part on the FY 2007 contribution amounts. In addition, removing the separate ERI funding for SERS may result in lower contributions to SERS through FY 2015. Reducing contributions in the early years of a funding plan increases the contributions that will be required in later years. The FY 2008 through FY 2045 required State contributions have not yet been calculated. The bill also makes several changes to the Pension Code which may reduce the growth in accrued liabilities. A reduction in the growth rate of the accrued liabilities will result in lower required annual State contributions over the life of the funding plan. The amount of the annual reductions has not been calculated.State Debt Impact Note (H-AM 2)(Comm on Gov't Forecasting & Accountability) Senate Bill 27 (H-AM 2) would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.Fiscal Note (H-AM 2)(Dept of Corrections) There is no corrections population or fiscal impact on the Department.Correctional Note (H-AM 2)(Dept of Corrections) There is no corrections population or fiscal impact on the Department. 1/26/2005SenateFiled with Secretary by Sen. James A. DeLeo; Prefiled on December 20, 2004 1/26/2005SenateFirst Reading 1/26/2005SenateReferred to Rules 2/3/2005SenateAssigned to Pensions & Investments 2/16/2005SenateDo Pass Pensions & Investments; 006-000-000 2/16/2005SenatePlaced on Calendar Order of 2nd Reading February 17, 2005 3/11/2005SenatePension Note Filed from the Commission on Government Forecasting and Accountability. 4/6/2005SenateSecond Reading 4/6/2005SenatePlaced on Calendar Order of 3rd Reading April 7, 2005 4/14/2005SenateAdded as Chief Co-Sponsor Sen. Martin A. Sandoval 4/14/2005SenateThird Reading - Passed; 046-011-000 4/14/2005HouseArrived in House 4/14/2005HousePlaced on Calendar Order of First Reading 4/14/2005HouseChief House Sponsor Rep. Robert S. Molaro 4/14/2005HouseFirst Reading 4/14/2005HouseReferred to Rules Committee 4/20/2005HouseAssigned to Executive Committee 5/13/2005HouseRule 19(a) / Re-referred to Rules Committee 5/24/2005HouseFinal Action Deadline Extended-9(b) May 31, 2005 5/24/2005HouseAssigned to Personnel and Pensions Committee 5/24/2005HouseMotion to Suspend Rule 25 - Prevailed 5/25/2005HouseDo Pass / Short Debate Personnel and Pensions Committee; 003-000-002 5/25/2005HousePlaced on Calendar 2nd Reading - Short Debate 5/25/2005HouseSecond Reading - Short Debate 5/25/2005HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/25/2005HouseAdded Alternate Chief Co-Sponsor Rep. Michael P. McAuliffe 5/25/2005HouseAdded Alternate Chief Co-Sponsor Rep. Angelo Saviano 5/27/2005HouseRecalled to Second Reading - Short Debate 5/27/2005HouseHeld on Calendar Order of Second Reading - Short Debate 5/27/2005HouseHouse Amendment No. 1 Filed with Clerk by Rep. Robert S. Molaro 5/27/2005HouseHouse Amendment No. 1 Referred to Rules Committee 5/27/2005HouseHouse Amendment No. 1 Rules Refers to Executive Committee 5/27/2005HouseBalanced Budget Note Filed As Amended by HA 1 5/27/2005HouseFiscal Note Filed As Amended by HA 1 5/27/2005HouseJudicial Note Filed As Amended by HA 1 5/27/2005HouseAlternate Chief Co-Sponsor Removed Rep. Michael P. McAuliffe 5/27/2005HouseAlternate Chief Co-Sponsor Removed Rep. Angelo Saviano 5/27/2005HouseHouse Amendment No. 1 Recommends Be Adopted Executive Committee; 008-005-000 5/27/2005HouseState Debt Impact Note Filed As Amended by HA 1 5/27/2005HousePension Note Filed As Amended by HA 1 5/27/2005HouseHome Rule Note Filed As Amended by HA 1 5/27/2005HouseState Mandates Fiscal Note Filed As Amended by HA 1 5/28/2005HouseHouse Amendment No. 2 Filed with Clerk by Rep. Robert S. Molaro 5/28/2005HouseHouse Amendment No. 2 Referred to Rules Committee 5/28/2005HouseBalanced Budget Note Filed As Amended by HA 2 5/28/2005HouseFiscal Note Filed As Amended by HA 2 5/28/2005HouseJudicial Note Filed As Amended by HA 2 5/28/2005HouseState Mandates Fiscal Note Filed As Amended by HA 2 5/28/2005HouseHome Rule Note Filed As Amended by HA 2 5/28/2005HouseHousing Affordability Impact Note Filed As Amended by HA 2 5/28/2005HouseHouse Amendment No. 2 Recommends Be Adopted Rules Committee; 003-002-000 5/28/2005HouseState Debt Impact Note Filed As Amended by HA 2 5/28/2005HousePension Note Filed As Amended by HA 2 5/28/2005HouseHouse Amendment No. 1 Withdrawn by Rep. Robert S. Molaro 5/28/2005HouseHeld on Calendar Order of Second Reading - Short Debate 5/28/2005HousePension Note Filed As Amended by HA 2 Revised 5/28/2005HouseState Debt Impact Note Filed As Amended by HA 2 Revised 5/28/2005HouseFiscal Note Filed As Amended by HA 2 5/28/2005HouseCorrectional Note Filed As Amended by HA 2 5/29/2005HouseAdded Alternate Chief Co-Sponsor Rep. Calvin L. Giles 5/29/2005HouseSecond Reading - Short Debate 5/29/2005HouseHouse Amendment No. 2 Adopted by Voice Vote 5/29/2005HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/29/2005HouseThird Reading - Short Debate - Passed 061-053-000 5/29/2005SenateSecretary's Desk - Concurrence House Amendment(s) 02 5/29/2005SenatePlaced on Calendar Order of Concurrence House Amendment(s) 02 5/29/2005SenateHouse Amendment No. 2 Motion to Concur Filed with Secretary Sen. James A. DeLeo 5/29/2005SenateHouse Amendment No. 2 Motion to Concur Referred to Rules 5/29/2005SenateChief Sponsor Changed to Sen. Jeffrey M. Schoenberg 5/29/2005SenateHouse Amendment No. 2 Motion to Concur Filed with Secretary Sen. Jeffrey M. Schoenberg 5/29/2005SenateHouse Amendment No. 2 Motion to Concur Referred to Rules 5/29/2005SenateHouse Amendment No. 2 Motion to Concur Rules Referred to Executive 5/29/2005SenateHouse Amendment No. 2 Motion To Concur Recommended Do Adopt Executive; 008-004-000 5/29/2005SenatePassed Both Houses 5/29/2005SenateHouse Amendment No. 2 Senate Concurs 032-026-000 5/30/2005SenateSent to the Governor 6/1/2005SenateGovernor Approved 6/1/2005SenateEffective Date June 1, 2005 6/1/2005SenatePublic Act . . . . . . . . . 94-0004