Bill Status of HB3303  9th General Assembly


Short Description:  PENSION SERVICE CREDIT FREEZE

House Sponsors
Rep. Thomas Morrison - Jeanne M Ives - Barbara Wheeler

Last Action
DateChamber Action
  12/3/2014HouseSession Sine Die

Statutes Amended In Order of Appearance
40 ILCS 5/1-161 new
40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131


Synopsis As Introduced
Amends the Illinois Pension Code. With respect to the 5 State-funded retirement systems: Provides a new funding formula for State contributions, with a 100% funding goal and amortization calculated on a level dollar amount. Provides that no additional service credit may be accrued and no automatic increase in a retirement annuity shall be received. Provides that the pensionable salary of an active participant may not exceed that individual's pensionable salary as of the effective date. Provides that State-funded retirement systems shall establish self-directed retirement plans for all active participants and all employees hired on or after the effective date. Provides that all active participants shall have the option of participating in a self-directed retirement plan. Provides that these changes are controlling over any other law. Effective immediately.

 Pension Note (Government Forecasting & Accountability)
 The Commissionís actuary performed a cost study on a proposal that is substantially similar to HB 3303. That cost study showed a long-term reduction in State contributions for TRS only (through FY 2045) of $71.4 billion, and a reduction in FY 2014 unfunded liability of $27.4 billion. However, this cost study assumed no deviation from the current statutory funding target of amassing assets that are equal to 90% of DB liabilities by FY 2045. HB 3303 changes this target to 100% by FY 2045, and it specifies a level-dollar amortization approach. These two changes would result in greater long-term savings than those previously mentioned; however, an updated actuarial study would be required to capture the precise savings associated with the funding changes.

Actions 
DateChamber Action
  2/26/2013HouseFiled with the Clerk by Rep. Thomas Morrison
  2/26/2013HouseFirst Reading
  2/26/2013HouseReferred to Rules Committee
  3/5/2013HouseAdded Chief Co-Sponsor Rep. Jeanne M Ives
  3/11/2013HouseAssigned to Personnel and Pensions Committee
  3/20/2013HousePension Note Filed
  3/22/2013HouseRule 19(a) / Re-referred to Rules Committee
  7/25/2013HouseAdded Chief Co-Sponsor Rep. Barbara Wheeler
  12/3/2014HouseSession Sine Die