House Sponsors: MURPHY, SCHOENBERG AND MOORE,EUGENE. Short description: PEN CD-UNIV-ADMINISTRATIVE Synopsis of Bill as introduced: Amends the State Universities Article of the Pension Code. Increases the System's authority to issue bonds, allowing up to $20,000,000 to be outstanding at any one time. Limits existing benefits by: (i) excluding certain earnings after June 30, 1997 from the calculation of the final rate of earnings; (ii) imposing additional requirements on return to service following a leave of absence; (iii) requiring a return to service within one year after discharge in order to obtain credit for military service; and (iv) removing a provision allowing beneficiaries to elect to receive death benefits in multiple payments. (Article 13, Section 5 of the Illinois Constitution may prevent these limitations from applying to certain current or former members.) For new participants only, limits credit for unused sick leave to a maximum of one year. Changes the definition of "effective rate of interest" by adding additional factors to be included in determining the rate, including the desirability of minimizing volatility in the rate from year to year; states that the change is a clarification of existing law. Changes provisions relating to the calculation of interest when purchasing military service credit. Deletes provisions that suspend or reduce the annuity of certain persons who return to employment after retirement. Grants the Secretary of the Board the power to issue subpoenas. Allows annuitants and beneficiaries to authorize withholding from their annuities and benefits. Allows the System to pay benefits to the trustee of a trust created for the benefit of a minor or person under legal disability; provides that the System is not responsible for determining the validity of the trust and must conclusively rely on the representations of the trustee. Also makes technical changes. Effective immediately. HOUSE AMENDMENT NO. 1. Deletes reference to: 40 ILCS 5/15-139 Deletes from the bill changes that deleted provisions suspending or reducing the annuity of certain persons who return to employment after retirement. HOUSE AMENDMENT NO. 2. Changes provisions relating to the use of unused sick leave in calculating service credit. Deletes the one-year maximum. Limits the types of unused sick leave that may be considered. HOUSE AMENDMENT NO. 3. Removes the return to service requirement for persons who are on a leave of absence for service with a teacher organization. PENSION NOTE Administrative changes will have no major fiscal impact. PENSION NOTE, AMENDED Change to SURS bonding authority would reduce growth of assets; H-ams 1, 2, and 3 would not affect fiscal impact. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 3 SENATE - 0 END OF INQUIRY Full Text Bill Status