Illinois General Assembly - Bill Status for SB2437

Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that, in addition to certain listed items, reported payroll data must include any and all other data necessary for the Fund to calculate pension benefits. Provides that any necessary amendments or corrections to certified data provided by the employer must be made within one year after the certified data is received by the Fund. Effective immediately.

Replaces everything after the enacting clause. Amends the Chicago Municipal and Chicago Laborers Articles of the Illinois Pension Code. Increases the retirement age for persons who first become participants on or after the effective date of the amendatory Act. Increases employee contribution for persons who first become participants on or after the effective date of the amendatory Act and makes other changes to the employee contribution rate. Provides that a person who first became a participant on or after January 1, 2011 and before the effective date of the amendatory Act may elect to be eligible for a reduced retirement age in exchange for an increase in employee contributions. Makes changes to the city's required contribution to each fund beginning in payment year 2018 and makes changes to provisions concerning employer contributions. Creates a payment obligation to the Fund, provides for enforcement through mandamus, and authorizes withholding from State grants in the case of nonpayment. Makes changes to the definition of "employee". Removes the city comptroller from the board of each fund and adds 2 members appointed by the mayor of the city to the membership of those boards. Makes changes to provisions concerning felony forfeiture. Provides that if there is an injury or death for which death or disability benefits are payable, the fund may subrogate a claim made by that employee against a third party. In the Chicago Municipal Article, provides that a person who first becomes a city officer on or after the effective date of the amendatory Act shall not be eligible for the alternative annuity or alternative disability benefits. Makes other changes. Contains inseverability and severability provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Replaces everything after the enacting clause. Reinserts the provisions of the bill, as amended by House Amendment No. 4, with changes that include the following. In the Chicago Municipal and Chicago Laborers Articles, provides that beginning January 1, 2019, employee contributions shall be the lesser of: (i) 9.5% of each payment of salary combined with certain other contributions for automatic annual increases and widow's annuities; or (ii) the total normal cost, calculated using the entry age normal actuarial method, projected for that fiscal year for the benefits and expenses of the plan, but not less than 6.5% of each payment of salary combined with certain other contributions for automatic annual increases and widow's annuities. Provides that if the fund, after reaching a funding ratio of 90%, is subsequently determined to have a funding ratio below 75%, the employee contributions for age and service annuity shall revert to the lesser of the normal cost, but not less than 6.5% of each payment of salary, or 9.5% of each payment of salary (instead of reverting to 9.5% of each payment of salary). Provides that if employee contributions are reduced due to the application of the normal cost criterion, the employee contribution amount shall be consistent from July 1 of the fiscal year through June 30 of that fiscal year. Provides that the normal cost shall be calculated by an enrolled actuary retained by the fund. Provides that the actuary shall utilize participant data and actuarial standards of practice to calculate the normal cost. Effective immediately.

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