Full Text of SB1266 101st General Assembly
SB1266 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1266 Introduced 2/6/2019, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/17-127 | from Ch. 108 1/2, par. 17-127 | 40 ILCS 5/17-142.1 | from Ch. 108 1/2, par. 17-142.1 |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Beginning in 2020, requires (rather than allows) the Board of Trustees to pay to each recipient of a service retirement, disability retirement, or survivor's pension an amount to be determined by the Board, which shall represent partial or complete reimbursement (rather than partial) for the cost of the recipient's health insurance coverage. Provides that beginning in 2020, the total amount of payments for each year shall equal $65,000,000 plus any amount that was authorized or required to be paid in the preceding year but was not actually paid by the Board, including any interest earned thereon. Makes conforming changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB1266 | | LRB101 04974 RPS 49983 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 17-127 and 17-142.1 as follows:
| 6 | | (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
| 7 | | Sec. 17-127. Financing; revenues for the Fund.
| 8 | | (a) The revenues for the Fund shall consist of: (1) amounts | 9 | | paid into
the Fund by contributors thereto and from employer | 10 | | contributions and State
appropriations in accordance with this | 11 | | Article; (2) amounts contributed to the
Fund by an Employer; | 12 | | (3) amounts contributed to the Fund pursuant to any law
now in | 13 | | force or hereafter to be enacted; (4) contributions from any | 14 | | other
source; and (5) the earnings on investments.
| 15 | | (b) The General Assembly finds that for many years the | 16 | | State has
contributed to the Fund an annual amount that is | 17 | | between 20% and 30% of the
amount of the annual State | 18 | | contribution to the Article 16 retirement system,
and the | 19 | | General Assembly declares that it is its goal and intention to | 20 | | continue
this level of contribution to the Fund in the future.
| 21 | | (c) Beginning in State fiscal year 1999, the State shall | 22 | | include in its annual
contribution to the Fund an additional | 23 | | amount equal to 0.544% of the Fund's
total teacher payroll; |
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| 1 | | except that this additional contribution need not be
made in a | 2 | | fiscal year if the Board has certified in the previous fiscal | 3 | | year
that the Fund is at least 90% funded, based on actuarial | 4 | | determinations. These
additional State contributions are | 5 | | intended to offset a portion of the cost to
the Fund of the | 6 | | increases in retirement benefits resulting from this | 7 | | amendatory
Act of 1998.
| 8 | | (d) In addition to any other contribution required under | 9 | | this Article, including the contribution required under | 10 | | subsection (c), the State shall contribute to the Fund the | 11 | | following amounts: | 12 | | (1) For State fiscal year 2018, the State shall | 13 | | contribute $221,300,000 for the employer normal cost for | 14 | | fiscal year 2018 and the amount allowed under paragraph (3) | 15 | | of Section 17-142.1 of this Code to defray health insurance | 16 | | costs. Funds for this paragraph (1) shall come from funds | 17 | | appropriated for Evidence-Based Funding pursuant to | 18 | | Section 18-8.15 of the School Code. | 19 | | (2) Beginning in State fiscal year 2019, the State
| 20 | | shall contribute for each fiscal year an amount to be
| 21 | | determined by the Fund, equal to the employer normal cost
| 22 | | for that fiscal year, plus the amount under allowed | 23 | | pursuant to paragraph (3) of Section 17-142.1 to defray | 24 | | health insurance costs. | 25 | | (e) The Board shall determine the amount of State | 26 | | contributions required for each fiscal year on the basis of the |
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| 1 | | actuarial tables and other assumptions adopted by the Board and | 2 | | the recommendations of the actuary. On or before November 1 of | 3 | | each year, beginning November 1, 2017, the Board shall submit | 4 | | to the State Actuary, the Governor, and the General Assembly a | 5 | | proposed certification of the amount of the required State | 6 | | contribution to the Fund for the next fiscal year, along with | 7 | | all of the actuarial assumptions, calculations, and data upon | 8 | | which that proposed certification is based. | 9 | | On or before January 1 of each year, beginning January 1,
| 10 | | 2018, the State Actuary shall issue a preliminary report
| 11 | | concerning the proposed certification and identifying, if
| 12 | | necessary, recommended changes in actuarial assumptions that
| 13 | | the Board must consider before finalizing its certification of
| 14 | | the required State contributions. | 15 | | (f) On or before January 15, 2018 and each January 15 | 16 | | thereafter, the Board shall certify to the Governor and the
| 17 | | General Assembly the amount of the required State contribution
| 18 | | for the next fiscal year. The certification shall include a
| 19 | | copy of the actuarial recommendations upon which it is based
| 20 | | and shall specifically identify the Fund's projected employer
| 21 | | normal cost for that fiscal year. The Board's certification
| 22 | | must note any deviations from the State Actuary's recommended
| 23 | | changes, the reason or reasons for not following the State
| 24 | | Actuary's recommended changes, and the fiscal impact of not
| 25 | | following the State Actuary's recommended changes on the
| 26 | | required State contribution. |
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| 1 | | For the purposes of this Article, including issuing | 2 | | vouchers, and for the purposes of subsection (h) of Section 1.1 | 3 | | of the State Pension Funds Continuing Appropriation Act, the | 4 | | State contribution specified for State fiscal year 2018 shall | 5 | | be deemed to have been certified, by operation of law and | 6 | | without official action by the Board or the State Actuary, in | 7 | | the amount provided in subsection (c) and subsection (d) of | 8 | | this Section. | 9 | | (g) For State fiscal year 2018, the State Board of | 10 | | Education shall submit vouchers, as directed by the Board, for | 11 | | payment of State contributions to the Fund for the required | 12 | | annual State contribution under subsection (d) of this Section. | 13 | | These vouchers shall be paid by the State Comptroller and | 14 | | Treasurer by warrants drawn on the amount appropriated to the | 15 | | State Board of Education from the Common School Fund in Section | 16 | | 5 of Article 97 of Public Act 100-21. If State appropriations | 17 | | for State fiscal year 2018 are less than the amount lawfully | 18 | | vouchered under this subsection, the difference shall be paid | 19 | | from the Common School Fund under the continuing appropriation | 20 | | authority provided in Section 1.1 of the State Pension Funds | 21 | | Continuing Appropriation Act. | 22 | | (h) For State fiscal year 2018, the Board shall submit | 23 | | vouchers for the payment of State contributions to the Fund for | 24 | | the required annual State contribution under subsection (c) of | 25 | | this Section. Beginning in State fiscal year 2019, the Board | 26 | | shall submit vouchers for payment of State contributions to the |
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| 1 | | Fund for the required annual State contribution under | 2 | | subsections (c) and (d) of this Section. These vouchers shall | 3 | | be paid by the State Comptroller and Treasurer by warrants | 4 | | drawn on the funds appropriated to the Fund for that fiscal | 5 | | year. If State appropriations to the Fund for the applicable | 6 | | fiscal year are less than the amount lawfully vouchered under | 7 | | this subsection, the difference shall be paid from the Common | 8 | | School Fund under the continuing appropriation authority | 9 | | provided in Section 1.1 of the State Pension Funds Continuing | 10 | | Appropriation Act. | 11 | | (Source: P.A. 100-465, eff. 8-31-17.)
| 12 | | (40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
| 13 | | Sec. 17-142.1. To defray health insurance costs. To provide | 14 | | for the
partial reimbursement of health insurance costs.
| 15 | | (1) On the first day of September of each year, beginning | 16 | | in 1988 through 2019 ,
the Board may, by separate warrant, pay | 17 | | to each recipient of a service
retirement, disability | 18 | | retirement or survivor's pension an amount to be
determined by | 19 | | the Board, which shall represent partial reimbursement for
the | 20 | | cost of the recipient's health insurance coverage.
| 21 | | On the first day of September of each year, beginning in | 22 | | 2020, the Board shall, by separate warrant, pay to each | 23 | | recipient of a service retirement, disability retirement, or | 24 | | survivor's pension an amount to be determined by the Board, | 25 | | which shall represent partial or complete reimbursement for the |
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| 1 | | cost of the recipient's health insurance coverage. | 2 | | (2) In lieu of the annual payment under authorized in | 3 | | subdivision (1), for
pensioners enrolled in the Fund's regular | 4 | | health care deduction plans, the
Fund may pay the health | 5 | | insurance premium reimbursement on a monthly rather
than annual | 6 | | basis, at the percentage rate established from time to time by
| 7 | | the Board. If the Board so directs, these monthly payments may | 8 | | be made in
the form of a direct payment of premium and a | 9 | | reduction in the amount
deducted from the annuity, rather than | 10 | | in the form of reimbursement by
separate warrant.
| 11 | | (3) Until 2020, total Total payments under this Section in | 12 | | any year may not exceed
$65,000,000 plus any amount that was | 13 | | authorized to be paid
under this Section in the preceding year | 14 | | but was not actually paid by the
Board, including any interest | 15 | | earned thereon.
| 16 | | Beginning in 2020, total payments under this Section in any | 17 | | year shall be equal to $65,000,000 plus any amount that was | 18 | | authorized or required to be paid under this Section in the | 19 | | preceding year but was not actually paid by the Board, | 20 | | including any interest earned thereon. | 21 | | (4) Until 2020, the The total amount of payments under this | 22 | | Section in any year may not exceed 75% of the total cost of | 23 | | health insurance coverage in that year for all the recipients | 24 | | who receive payments authorized by this Section in that year.
| 25 | | (Source: P.A. 93-677, eff. 6-28-04.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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