Senate Sponsors: MAITLAND-MADIGAN,R-PARKER. House Sponsors: HOEFT-MADIGAN,MJ-LINDNER-RONEN-CURRIE 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. PENSION NOTE SB499 will have no major fiscal impact. SENATE AMENDMENT NO. 1. Deletes reference to: 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-113.2 from Ch. 108 1/2, par. 15-113.2 40 ILCS 5/15-113.3 from Ch. 108 1/2, par. 15-113.3 40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4 40 ILCS 5/15-113.7 from Ch. 108 1/2, par. 15-113.7 40 ILCS 5/15-125 from Ch. 108 1/2, par. 15-125 40 ILCS 5/15-139 from Ch. 108 1/2, par. 15-139 40 ILCS 5/15-143 from Ch. 108 1/2, par. 15-143 40 ILCS 5/15-153.2 from Ch. 108 1/2, par. 15-153.2 40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157 40 ILCS 5/15-167.2 from Ch. 108 1/2, par. 15-167.2 40 ILCS 5/15-168.1 new 40 ILCS 5/15-185 from Ch. 108 1/2, par. 15-185 40 ILCS 5/15-190 from Ch. 108 1/2, par. 15-190 40 ILCS 5/15-191 from Ch. 108 1/2, par. 15-191 40 ILCS 5/15-144 rep. Adds reference to: 40 ILCS 5/16-153.2 rep. Deletes everything. Repeals an obsolete Section relating to the old health insurance benefit for retired downstate teachers. Effective immediately. PENSION NOTE, H-AM 1 There may be a minor increase in administrative costs. HOUSE AMENDMENT NO. 1. Deletes reference to: 40 ILCS 5/16-153.2 rep. Adds reference to: 40 ILCS 5/1-119 new 750 ILCS 5/503 from Ch. 40, par. 503 Deletes everything. Amends the General Provisions Article of the Pension Code to provide for the issuance of Qualified Illinois Domestic Relations Orders (QILDROs). Provides for a former spouse designated in a QILDRO to receive all or a specified portion of the retirement benefit or member's refund otherwise payable to a member or the member's beneficiary under the Code. Specifies conditions and procedures. Requires the member's written consent before a QILDRO is effective against a current member. Amends the Illinois Marriage and Dissolution of Marriage Act. Provides that pension benefits become marital property. Includes provisions for valuing pension benefits as marital property and other provisions. Effective July 1, 1999 or 6 months after becoming law, whichever is later. JUDICIAL NOTE, H-AM 1 No decrease or increase in need for the number of judges. CORRECTIONAL NOTE, H-AM 1 This bill has no fiscal or prison population impact. STATE DEBT NOTE, H-AM 1 There will be no impact on the level of State indebtedness. STATE MANDATES ACT FISCAL NOTE, H-AM 1 Fails to create a State mandate. HOME RULE NOTE, H-AM 1 Contains no language preempting home rule. FISCAL NOTE, H-AM 1 (State Employees' Retirement System) Estimated first year impact, $75,000 to $85,000; subsequent annual impact, $50,000. Last action on Bill: TOTAL VETO STANDS Last action date: 98-11-19 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status