92nd General Assembly
Summary of HB0477
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House Sponsors:
HOEFT-MCGUIRE AND TURNER,JOHN.

Short description: 
PEN CD-PURCHASING POWER INCRS                                              

Synopsis of Bill as introduced:
        Amends  the  State  Employee,  Universities,  and  Downstate  and      
   Chicago Teacher Articles of the Illinois Pension Code.  Declares it to      
   be the public policy of this State and the intention  of  the  General      
   Assembly  to  protect  annuitants against significant decreases in the      
   purchasing power of retirement and survivor's annuities.  Directs  the      
   affected  retirement  systems  to  review  and  report  on significant      
   changes in purchasing power.  Provides  for  a  one-time  increase  in      
   certain  retirement  and survivor's annuities.  Requires the resulting      
   liability to be paid on a level dollar basis over a period of 10 years      
   beginning July 1, 2003.  Amends the  State  Mandates  Act  to  require      
   implementation without reimbursement.  Effective immediately.               
          PENSION NOTE (Pension Laws Commission)                               
          HB 477 would increase the annuities of 26,850 retirees and           
          survivors and increase the accrued liabilities of the affected       
          systems by $251.1 million. The annual level dollar payment           
          required to amortize the increase in accrued liability over          
          10 years is estimated to be $33.4 million (excluding Chicago         
          Teachers' Pension Fund for which HB 477 does not require an          
          amortization payment). The fiscal impact of HB 477 on each of        
          the affected Systems is as follows:                                  
          State Employees Retirement System                                    
           increase in accrued liabilities                 $ 37.9 million      
           annual payment to amortize over 10 years        $  6.0 million      
           number of increased annuities                            8,050      
          State Universities Retirement System                                 
           increase in accrued liabilities                  $31.3 million      
           annual payment to amortize over 10 years         $ 6.1 million      
           number of increased annuities                            2,900      
          Teachers' Retirement System                                          
           increase in accrued liabilities                 $142.8 million      
           annual payment to amortize over 10 years        $ 21.3 million      
           number of increased annuities                           13,100      
          Chicago Teachers' Pension Fund                                       
           increase in accrued liabilities                 $ 39.1 million      
           annual payment to amortize over 10 years        $  8.1 million      
           number of increased annuities                            2,800      
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

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


   END OF INQUIRY 



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