90th General Assembly
Summary of SB0667
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Senate Sponsors:
MADIGAN,R.

House Sponsors:
HARTKE-CAPPARELLI

Short description: 
PEN CD-UNIVERSITIES-TECHNICAL                                              

Synopsis of Bill as introduced:
        Amends the Universities  Article  of  the  Pension  Code.   In  a      
   Section   on   retirement   annuities,  corrects  an  incorrect  cross      
   reference.  Effective immediately.                                          
          PENSION IMPACT NOTE                                                  
          SB 667 has no fiscal impact.                                         
          PENSION IMPACT NOTE, ENGROSSED                                       
          No change from previous note.                                        
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          40 ILCS 5/15-136                                                     
          Adds reference to:                                                   
          35 ILCS 200/18-185                                                   
          40 ILCS 5/2-117.4 new                                                
          40 ILCS 5/7-132                 from Ch. 108 1/2, par. 7-132         
          40 ILCS 5/7-141.1                                                    
          40 ILCS 5/7-171                 from Ch. 108 1/2, par. 7-171         
          40 ILCS 5/9-134.3 new                                                
          40 ILCS 5/14-105.1              from Ch. 108 1/2, par. 14-105.1      
          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 5/15-136.2              from Ch. 108 1/2, par. 15-136.2      
          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 5/16-127                from Ch. 108 1/2, par. 16-127        
          40 ILCS 5/16-140                from Ch. 108 1/2, par. 16-140        
          40 ILCS 5/18-112                from Ch. 108 1/2, par. 18-112        
          40 ILCS 5/15-144 rep.                                                
          30 ILCS 805/8.21 new                                                 
        Deletes everything.  Amends the Illinois Pension Code to allow  a      
   former  member  of  the  General  Assembly who transferred his credits      
   under the State Employees' Retirement System to the  General  Assembly      
   Retirement System to retransfer a portion of those credits back to the      
   State  Employees'  Retirement  System.   Amends the Illinois Municipal      
   Retirement Fund (IMRF) Article of the Illinois Pension Code.   Deletes      
   provisions  limiting  the  early  retirement incentive program to once      
   every 6 years.  Provides that employees of the governing board of  the      
   Special  Education District of Lake County must begin participating in      
   the Fund as of July 1, 1997.  Provides that  current  employees  shall      
   receive free credit for up to 5 years of their prior service with that      
   employer,  but employee contributions must be paid in order to receive      
   credit for the remainder of that prior  service.   Provides  that  the      
   school  districts participating in a special education joint agreement      
   created  under  Section  10-22.31  of  the  School  Code  that  is   a      
   participating instrumentality may include their proportionate share of      
   the  employer  contribution  for  current  or  prior  service  in  the      
   districts'   IMRF   tax  levy.   Amends  the  Property  Tax  Extension      
   Limitation Law to exclude from the  aggregate  extension  any  amounts      
   levied  by  school districts that participate in the Special Education      
   District of Lake County to pay for their share of the District's  IMRF      
   costs.  Amends  the Cook County Article of the Pension Code to provide      
   for a program of early retirement incentives.   Also  applies  to  the      
   Cook  County Forest Preserve District pension fund.   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; (iv) removing a provision allowing beneficiaries to elect  to      
   receive  death  benefits in multiple payments; and (v) limiting credit      
   for unused sick  leave.   (Article  13,  Section  5  of  the  Illinois      
   Constitution  may  prevent  these limitations from applying to certain      
   current or former members.)  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.      
   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.  Allows certain university      
   firefighters and police officers to have their benefits based on their      
   salary on the last day of service as a firefighter or police  officer.      
   Extends   the  deadline  for  early  retirement  without  discount  to      
   September 1,  2002.    Also  makes  technical  changes.    Amends  the      
   Downstate  Teacher  Article  to extend to January 1, 1998 the deadline      
   for certain surviving spouses who were married for at least 12 months,      
   but not the 12 months immediately preceding  the  member's  death,  to      
   apply  for  benefits as a dependent beneficiary.  Allows up to 5 years      
   of credit to be established for periods between January  1,  1959  and      
   December  31,  1963  during  which  a teacher was employed by Southern      
   Illinois University - Carbondale.  Amends the Judges  Article  of  the      
   Pension  Code.    In  the  Section that provides for transfer of State      
   employee and teacher credits to the Judges Retirement System, provides      
   that a judge who was legal adviser to the State Board of Education can      
   transfer up to 11 years of these credits at a reduced cost  and  at  a      
   reduced  rate  of  interest.  Amends the State Mandates Act to require      
   implementation without reimbursement.  Effective immediately.               
          PENSION NOTE, H-AM 1                                                 
          SB 667 would have little or no fiscal impact on the bill.            
          FISCAL NOTE, H-AM 1 (Economic & Fiscal Comm.)                        
          SB 667 impacts numerous pension systems and local gov't's.           
        HOUSE AMENDMENT NO. 2.                                                 
          Adds reference to:                                                   
          35 ILCS 200/18-185                                                   
          40 ILCS 5/1-113                 from Ch. 108 1/2, par. 1-113         
          40 ILCS 5/2-110                 from Ch. 108 1/2, par. 2-110         
          40 ILCS 5/2-117.4 new                                                
          40 ILCS 5/3-110.2               from Ch. 108 1/2, par. 3-110.2       
          40 ILCS 5/4-108.1               from Ch. 108 1/2, par. 4-108.1       
          40 ILCS 5/5-230                 from Ch. 108 1/2, par. 5-230         
          40 ILCS 5/6-224                 from Ch. 108 1/2, par. 6-224         
          40 ILCS 5/7-132                 from Ch. 108 1/2, par. 7-132         
          40 ILCS 5/7-139.1               from Ch. 108 1/2, par. 7-139.1       
          40 ILCS 5/7-141.1                                                    
          40 ILCS 5/7-171                 from Ch. 108 1/2, par. 7-171         
          40 ILCS 5/8-138                 from Ch. 108 1/2, par. 8-138         
          40 ILCS 5/8-138.3 new                                                
          40 ILCS 5/8-150.1               from Ch. 108 1/2, par. 8-150.1       
          40 ILCS 5/8-154                 from Ch. 108 1/2, par. 8-154         
          40 ILCS 5/8-159                 from Ch. 108 1/2, par. 8-159         
          40 ILCS 5/8-226                 from Ch. 108 1/2, par. 8-226         
          40 ILCS 5/8-226.1               from Ch. 108 1/2, par. 8-226.1       
          40 ILCS 5/9-121.1               from Ch. 108 1/2, par. 9-121.1       
          40 ILCS 5/9-134.3 new                                                
          40 ILCS 5/10-104.1              from Ch. 108 1/2, par. 10-104.1      
          40 ILCS 5/11-125.1              from Ch. 108 1/2, par. 11-125.1      
          40 ILCS 5/11-133.2 new                                               
          40 ILCS 5/11-134                from Ch. 108 1/2, par. 11-134        
          40 ILCS 5/11-145.1              from Ch. 108 1/2, par. 11-145.1      
          40 ILCS 5/11-149                from Ch. 108 1/2, par. 11-149        
          40 ILCS 5/11-154                from Ch. 108 1/2, par. 11-154        
          40 ILCS 5/11-215                from Ch. 108 1/2, par. 11-215        
          40 ILCS 5/12-127.1              from Ch. 108 1/2, par. 12-127.1      
          40 ILCS 5/13-801                from Ch. 108 1/2, par. 13-801        
          40 ILCS 5/14-103.04             from Ch. 108 1/2, par. 14-103.0      
          40 ILCS 5/14-104                from Ch. 108 1/2, par. 14-104        
          40 ILCS 5/14-104.10 new                                              
          40 ILCS 5/14-105.1              from Ch. 108 1/2, par. 14-105.1      
          40 ILCS 5/14-105.3              from Ch. 108 1/2, par. 14-105.3      
          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 5/15-134.2              from Ch. 108 1/2, par. 15-134.2      
          40 ILCS 5/15-136.2              from Ch. 108 1/2, par. 15-136.2      
          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 5/16-127                from Ch. 108 1/2, par. 16-127        
          40 ILCS 5/16-131.1              from Ch. 108 1/2, par. 16-131.1      
          40 ILCS 5/16-140                from Ch. 108 1/2, par. 16-140        
          40 ILCS 5/17-114.1              from Ch. 108 1/2, par. 17-114.1      
          40 ILCS 5/17-116.4                                                   
          40 ILCS 5/18-112                from Ch. 108 1/2, par. 18-112        
          40 ILCS 5/18-112.1              from Ch. 108 1/2, par. 18-112.1      
          40 ILCS 5/15-144 rep.                                                
          30 ILCS 805/8.21 new                                                 
        Deletes everything.  Amends the Illinois Pension Code.    In  the      
   General  Provisions  Article, expands the authority of the Cook County      
   pension  fund  to  invest  in  securities  of  foreign  and   domestic      
   corporations.    In  the General Assembly Article, allows both current      
   and former members to establish and reinstate service credits in other      
   public pension funds and to transfer  those  credits  to  the  General      
   Assembly  Retirement  System  without  payment  of  the  corresponding      
   employer contributions, until June 1, 1998.  Allows a former member of      
   the  General  Assembly  who  transferred  his or her credits under the      
   State Employees' Retirement System to the General Assembly  Retirement      
   System  to  retransfer  a  portion  of those credits back to the State      
   Employees' Retirement System.  In the  Illinois  Municipal  Retirement      
   Fund  (IMRF) Article, deletes provisions limiting the early retirement      
   incentive program to once every 6 years.  Provides that  employees  of      
   the  governing  board of the Special Education District of Lake County      
   must begin participating in the Fund as of July  1,  1997.    Provides      
   that  current employees shall receive free credit for up to 5 years of      
   their prior service with that  employer,  but  employee  contributions      
   must  be  paid  in  order  to receive credit for the remainder of that      
   prior service.  Provides that the school districts participating in  a      
   special  education  joint  agreement created under Section 10-22.31 of      
   the School Code that is a participating  instrumentality  may  include      
   their  proportionate share of the employer contribution for current or      
   prior service in the  districts'  IMRF  tax  levy.   Also  amends  the      
   Property  Tax  Extension  Limitation Law to exclude from the aggregate      
   extension any amounts levied by school districts that  participate  in      
   the  Special  Education District of Lake County to pay for their share      
   of the District's IMRF  costs.    Amends  the  Chicago  Municipal  and      
   Laborer   Articles   of  the  Pension  Code.   Increases  the  minimum      
   retirement annuity.  Provides for retirement at age 50 with  30  years      
   of  service.   Eliminates the age discount for employees who retire at      
   age 55 with 25  years  of  service.   Increases  the  minimum  widow's      
   annuity  and  allows  certain  widows  to  elect to receive 50% of the      
   deceased employee's retirement annuity instead of a  widow's  annuity.      
   Increases  the child's annuity and removes the combined family maximum      
   for certain persons currently eligible for child's annuities.  Removes      
   the maximum dollar amount limitation on widow's annuities  for  widows      
   of  employees  who died before January 23, 1987; requires repayment of      
   any refund of excess widow's  annuity  contributions,  plus  interest.      
   Allows  certain  periods  for which contributions have been paid to be      
   counted as service  for  ordinary  disability  purposes.   Provides  a      
   program  of early retirement incentives for employees who retire on or      
   before July 2, 1998.  Makes other changes.   Amends  the  Cook  County      
   Article  of  the  Pension  Code  to  provide  for  a  program of early      
   retirement  incentives.   Also  applies  to  the  Cook  County  Forest      
   Preserve District pension fund.  Amends the State Employee Article  of      
   the  Pension  Code  to  authorize  participation  by  employees of the      
   Illinois Development Finance Authority.  Authorizes purchase of credit      
   for prior service  with  the  Authority  or  its  predecessor  agency;      
   requires the applicant to pay both employee and employer contributions      
   plus interest.  Allows a person who rendered contractual services to a      
   member  of  the  General  Assembly  as  a worker providing constituent      
   services to persons in the member's district to  establish  creditable      
   service  for  up to 8 years of those contractual services.  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;  (iv)  removing  a  provision allowing      
   beneficiaries to elect to receive death benefits in multiple payments;      
   and (v) limiting credit for unused sick leave.  (Article 13, Section 5      
   of the  Illinois  Constitution  may  prevent  these  limitations  from      
   applying   to   certain  current  or  former  members.)   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.  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.    Allows      
   certain  university  firefighters  and  police  officers to have their      
   benefits based on their salary  on  the  last  day  of  service  as  a      
   firefighter  or  police  officer.    Extends  the  deadline  for early      
   retirement  without  discount  to  September  1,  2002.    Also  makes      
   technical changes.  Amends the Downstate Teacher Article to extend  to      
   January  1,  1998  the deadline for certain surviving spouses who were      
   married for at least 12 months, but  not  the  12  months  immediately      
   preceding  the  member's  death,  to apply for benefits as a dependent      
   beneficiary.  Allows up to 5 years of credit  to  be  established  for      
   periods  between  January 1, 1959 and December 31, 1963 during which a      
   teacher was employed by Southern  Illinois  University  -  Carbondale.      
   Amends  the  Chicago  Teacher  Article  of the Pension Code to allow a      
   person who began  receiving  early  retirement  benefits  in  1994  to      
   purchase  additional  service  credit for up to 3 weeks in 1968 during      
   which the person was prevented  from  working  due  to  civil  unrest.      
   Requires  an  additional  employee contribution.  Makes payment of the      
   resulting increase in retirement annuity  payable  retroactively  from      
   the  date  of  retirement.    Amends the Judges Article of the Pension      
   Code to allow a former judge to  transfer  service  credits  from  the      
   State  Employees'  Retirement  System to the Judges Retirement System.      
   In the Section that  provides  for  transfer  of  State  employee  and      
   teacher credits to the Judges Retirement System, provides that a judge      
   who  was legal adviser to the State Board of Education can transfer up      
   to 11 years of these credits at a reduced cost and at a  reduced  rate      
   of  interest.  Amends the State Mandates Act to require implementation      
   without reimbursement.  Effective immediately.                              
          PENSION NOTE, H-AM 2                                                 
          General Assembly: Fiscal impact is expected to be minimal.           
          Chicago Municipal: Total unfunded liabilities = $584.3; total        
          annual cost = $56.8; total tax levy = .73.                           
          Chicago Laborers: Total unfunded liabilities = $89.9; total          
          annual cost = $8.5; total tax levy = .75.                            
          Illinois Municipal: Fiscal impact is expected to be minimal.         
          Cook County: Fiscal impact is not known at this time; costs are      
          to be borne by the Cook County Board.                                
          State Employees: Fiscal impact is expected to be minor.              
          State Universities: Fiscal impact is expected to be significant      
          on the accrued liabilities of the System.                            
          Downstate Teachers: Fiscal impact is expected to be neutral or       
          minimal.                                                             
          Chicago Teachers: Fiscal impact is expected to be minimal.           
          Judges: Fiscal impact is estimated to be minor.                      
          STATE DEBT NOTE, H-AM 2                                              
          SB667 contains various changes, some of which would have a im-       
          pact on the system or fund amended.                                  
          FISCAL NOTE, H-AM 1 & 2 (Economic and Fiscal Comm.)                  
          No change from previous note.                                        
          STATE MANDATES FISCAL NOTE, H-AM 2 (DCCA)                            
          Creates a personnel mandate for which reimbursement would nor-       
          mally be required. However, the State Mandates Act is amended        
          to relieve the State of reimbursement liability. Those costs         
          which can be estimated total $65.3 million.                          
        HOUSE AMENDMENT NO. 3.                                                 
          Adds reference to:                                                   
          40 ILCS 5/2-123                 from Ch. 108 1/2, par. 2-123         
        Amends the General Assembly Article of the Pension Code.   Allows      
   a  former  member of the General Assembly to reinstate service credits      
   that have been forfeited by acceptance of a refund, without  a  return      
   to service.                                                                 
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   3     SENATE -   0


   END OF INQUIRY 
                                                                               



 Full Text  Bill Status