HB3116 97TH GENERAL ASSEMBLY

LRB097 09156 PJG 49291 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3116

Introduced 2/23/2011, by Rep. Charles E. Jefferson

SYNOPSIS AS INTRODUCED:

New Act

Creates the Public Pension Abuse Abatement Act. Authorizes and directs the Governor to execute a compact on behalf of the State with any other state to end abuse of public pension programs. Provides that the compacting states shall agree that no governmental employer under the jurisdiction of any state shall pay wages or salary to any public pension fund annuitant unless that annuitant elects to suspend his or her pension for the duration of his or her employment. Sets out provisions of the compact concerning definitions, the effective date, and construction and severability. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Public Pension Abuse Abatement Act.

Section 5. Public Pension Abuse Abatement Compact. The Governor is hereby authorized and directed to execute a compact on behalf of this State with any other state or states legally joining therein in the form substantially as follows:

PUBLIC PENSION ABUSE ABATEMENT COMPACT

The compacting states solemnly agree:

ARTICLE I:

FINDINGS AND PURPOSE

(a) It is common practice and a form of pension abuse for an individual to receive a public retirement annuity and then return to work and receive wages or salary from a governmental employer while continuing to receive their retirement annuity. This practice allows for an individual to receive multiple streams of revenue from governmental employers.

(b) The purpose of a retirement annuity is to provide retirement income and security to an individual at the end of his or her lifespan. It is not the purpose of a retirement annuity to supplement an individual's salary.

(c) The goal of this compact is to end the practice of an individual receiving a retirement annuity based upon public service and then returning to work and receiving wages or salary from a public employer.

(d) Each compacting state agrees to enact the following hiring policy:

No governmental employer under the jurisdiction of any state that agrees to this compact shall pay wages or salary to any public pension fund annuitant unless that public pension fund annuitant elects to suspend his or her pension for the duration of his or her employment.

ARTICLE II:

DEFINITIONS

As used in this compact, unless the context clearly requires a different construction:

"Public retirement annuity" means a retirement annuity paid to an individual that is based on service with a governmental employer.

"Governmental employer" means an employer financed through public funds, the employees of which are eligible to participate in a public pension plan.

"Public pension fund annuitant" means an individual receiving a public retirement annuity.

ARTICLE III:

EFFECTIVE DATE

This compact shall enter into force and become effective and binding when it has been enacted by the legislature of any state of the Union and thereafter shall enter into force and become effective and binding as to any other state when enacted by its legislature.

ARTICLE IV:

CONSTRUCTION AND SEVERABILITY

The provisions of this compact shall be liberally construed and shall be severable. If any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any participating state or of the United States, or the applicability of this compact to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and its applicability to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters.

Section 99. Effective date. This Act takes effect upon becoming law.