Senate Sponsors: BOMKE-MADIGAN,R-LUECHTEFELD-MAHAR-CULLERTON, GEO-KARIS, DUDYCZ, REA, MYERS,J, DEMUZIO, SHADID, JACOBS, BERMAN, SEVERNS, WELCH, CLAYBORNE, CARROLL, HALVORSON AND DILLARD. House Sponsors: HANNIG-POE-KLINGLER-MCCARTHY-GIGLIO Short description: PEN CD-TCHR RETIRMNT-CONTRBTNS Synopsis of Bill as introduced: Creates the Public Employee Pension Equity Act. PENSION NOTE There is no fiscal impact at this time. PENSION NOTE, ENGROSSED No change from previous note. HOUSE AMENDMENT NO. 1. (House recedes May 22, 1998) Adds an immediate effective date. CONFERENCE COMMITTEE REPORT NO. 1. Recommends that the House recede from H-am 1. Recommends that the bill be amended as follows: Deletes reference to: New Act Adds reference to: 5 ILCS 375/3 from Ch. 127, par. 523 5 ILCS 375/10 from Ch. 127, par. 530 40 ILCS 5/16-129.1 new 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133 40 ILCS 5/16-152 from Ch. 108 1/2, par. 16-152 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116 40 ILCS 5/17-119.1 new 40 ILCS 5/17-127 from Ch. 108 1/2, par. 17-127 40 ILCS 5/17-127.2 new 40 ILCS 5/17-130 from Ch. 108 1/2, par. 17-130 40 ILCS 5/17-130.2 new 30 ILCS 805/8.21 new Deletes everything. Amends the Downstate Teacher Article of the Pension Code. Increases the retirement formula to 2.2% of final average salary for each year of service earned after June 30, 1998. Allows members to elect to have the new rate apply to their existing service, by making an additional contribution. Also raises the rate to 2.3% for certain members who already have 30 years of service. Beginning July 1, 1998, requires school districts and other employers to make an employer contribution to the System. Increases the employee contribution by 0.85% of salary, but provides for a refund of the increase in certain cases. Amends the State Employees Group Insurance Act of 1971. Requires certain retired State employees who participate in the Teachers' Retirement System and have less than 20 years of service (and their survivors) to pay for a portion of the cost of their group insurance. In certain definitions relating to eligibility to participate in the State group insurance program, updates obsolete cross references to certain State employees who participate in the Teachers' Retirement System and adds to those references certain employees of that System. Amends the Chicago Teacher Article of the Pension Code. Increases the retirement formula to 2.2% of final average salary for each year of service earned after June 30, 1998. Allows members to elect to have the new rate apply to their existing service, by making an additional contribution. Also raises the rate to 2.3% for certain members who already have 30 years of service. Beginning July 1, 1998, requires employers of teachers and the State to make additional employer contributions to the Fund, except in years in which the Fund is at least 90% funded. Increases the employee contribution by 0.85% of salary, but provides for a refund of the increase in certain cases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. PENSION NOTE, CCR 1 Assuming 85% utilization of the upgrade of prior service, TRS estimates the 1st Conference Committee Report on SB 3 will in- crease the unfunded liability of the system by $971.0 million. TRS estimates the increase in the total required annual contri- butions, as a level percent of payroll, to be 2.431% (the pre- vious estimate was 2.332% of payroll). GOVERNOR'S AMENDATORY VETO MESSAGE Recommends increasing the additional employee contribution from 0.85% to 1.00% of salary. Increases the contribution rate for augmen- ting past service credit from 0.85% to 1.00% and reduces the offset on past service to one free year for every 3 full years of new service; also changes the salary to be used in calculating these contributions. Exempts certain employers from the new employer contribution for the duration of certain existing collective bargaining agreements. Makes certain adjustments in eligibility and benefits for persons who are age 54 1/2 or have pensions of at least 74.6% of average salary. Makes other changes. Last action on Bill: PUBLIC ACT.............................. 90-0582 Last action date: 98-05-27 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status