Legislation

Legislation

Please note: SURS does not endorse specific pension reform legislation. Our goal is to update and educate SURS members concerning legislation that may affect their retirement benefits.

House

HB 4064
- Pension Reform
Sponsor(s): Representative Jim Durkin

HB 4064 amends the General Assembly Retirement System, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System and Chicago Teachers Pension Fund articles of the Illinois Pension Code. 

Tier I Offer and Consideration Pension Reform

HB 4064 requires each Tier I employee (i.e., each employee who first became a participant of SURS before Jan. 1, 2011, and who is not in the Self-Managed Plan) to elect one of two options: 

(1) To accept a reduced and delayed automatic annual increase in retirement (the lesser of 3 percent or ½ of the increase in CPI-U, non-compounded, beginning the January on or after the earlier of age 67 or five years after retirement); or 

(2) To keep the current Tier I automatic annual increase in retirement (3 percent compounded, beginning the January after retirement).

Each Tier I employee who elects to accept the reduced and delayed automatic annual increase in retirement will: receive a payment equal to 10 percent of his or her employee contributions made before the effective date of the election (which will not count towards his or her pension); pay reduced employee contributions moving forward (7.2 percent for regular employees and 8.55 percent for public safety employees); and have his or her future earnings increases count towards his or her pension.

Each Tier I employee who elects to keep the current Tier I automatic annual increase in retirement will not have his or her future earnings increases count towards his or her pension.

Generally, the election for Tier I employees will occur between Jan. 1, 2018, and March 31, 2018, and will become effective on July 1, 2018.  A Tier I employee who fails to make an election within the required time period is deemed to have chosen to keep the current Tier I automatic annual increase in retirement.

Retirees, Tier II employees (i.e., employees who first became participants of SURS on or after Jan. 1, 2011), and employees in the Self-Managed Plan are not required to make an election.

State Funding Changes

HB 4064 requires the fiscal year 2019 state contribution to be recertified based on changes made by the legislation.

Effective Date

HB 4064 takes effect immediately upon becoming law.

Status:

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HB 4065
- Pension Reform
Sponsor(s): Representative Jim Durkin

HB 4065 amends the General Provisions, General Assembly Retirement System, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System, Chicago Teachers Pension Fund and Judges Retirement System articles of the Illinois Pension Code.   

Optional Hybrid Plan

HB 4065 creates an optional hybrid plan for individuals who first become participants of SURS on or after six months after the effective date of the legislation (and who are not participants in the Self-Managed Plan).   Individuals who first become participants of SURS on or after six months after the effective date of the legislation (and who are not participants in the Self-Managed Plan) can irrevocably elect to participate in Tier II within 30 days after becoming a participant.

For the defined benefit portion of the optional hybrid plan:

  • Final average salary (FAS) equals the average monthly (or annual) salary during the period of service in which earnings were the highest during the last 120 months (or 10 years) of service.
  • Pensionable earnings are capped at the federal Social Security Wage Base.
  • Age and service credits for retirement are the normal Social Security retirement age applicable to that member, but no earlier than age 67, with 10 years of service credit.
  • Retirement annuities are calculated using the following formula: 1.25 percent x each year of service credit x FAS.
  • Automatic annual increases are applied beginning 1 year after retirement, calculated at ½ of the percentage increase in the CPI-W.
  • Survivor benefits are equal to 66 2/3 percent of the member’s retirement annuity on the date of death, or 66 2/3 percent of the member’s earned annuity without an age reduction if the member was not retired on the date of death.
  • Employee contributions are equal to the lower of 6.2 percent of salary or the normal cost of benefits under the defined benefit portion of the plan.

For the defined contribution portion of the optional hybrid plan:

  • Employee contributions are equal to a minimum of 4 percent of salary.
  • Employer contributions for employees with at least one year of service with the same employer are equal to a rate set for individual employees, but no higher than 6 percent of salary and no lower than 2 percent of salary.
  • The participant vests in employer contributions when they are paid into his or her account.
  • The plan must provide a variety of investment options (including investments handled by the Illinois State Board of Investment) and a variety of options for payouts to retirees and their survivors.

Future benefits under the optional hybrid plan can be modified.  Benefit increases under the optional hybrid plan cannot take effect unless they are approved by a resolution or ordinance of the governing body of the unit of local government responsible for those employees.  

Beginning November 1, 2019, SURS must annually determine the amount of the state contribution that would have been required for the next fiscal year if the optional hybrid plan and the changes in employer contributions had not taken effect, based on the law in effect on May 31, 2019.   Beginning in fiscal year 2021, an amount equal to the annual savings of the optional hybrid plan must be transferred from the General Revenue Fund to the Pension Stabilization Fund for distribution to the State-funded retirement systems until the earlier of fiscal year 2045 or until each system becomes 100 percent funded.

Accelerated Pension Benefit Payment Option

HB 4065 makes an accelerated pension benefit payment option available to eligible SURS participants between January 1, 2018 and July 1, 2018.  An eligible SURS participant is a person who is no longer a participating employee; has accrued the necessary service credit for retirement; has not received a retirement annuity from SURS; is not a party to pending divorce proceeding and does not have a QILDRO in effect against him or her under SURS; and is not a participant in the Self-Managed Plan.  By January 1, 2018, SURS must calculate the net present value of pension benefits for each eligible participant.  SURS must offer each eligible participant the opportunity to irrevocably elect to receive an accelerated pension benefit payment equal to 70 percent of the net present value of his or her pension benefits in lieu of receiving any pension benefit from SURS.   The accelerated pension benefit payment must be rolled into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended.  Upon acceptance of an accelerated pension benefit payment, the participant forfeits all accrued rights and credits in SURS.  If the participant subsequently returns to active service under SURS, then any subsequent pension benefits are based on the credits and creditable service accrued after the return to active service.  The accelerated pension benefit payment cannot be repaid to SURS, and terminated credits and creditable service cannot be reinstated under SURS.  A SURS member who receives an accelerated pension benefit payment will still receive any applicable retiree health insurance benefits. 

Voluntary Defined Contribution Plan

HB 4065 requires SURS to provide a voluntary defined contribution plan for up to 5 percent of eligible Tier I employees by July 1, 2018.  Only individuals who are Tier I employees of SURS on the effective date of the legislation are eligible to participate in the defined contribution plan.  Under the defined contribution plan, a Tier I employee could elect to stop accruing benefits in the defined benefit plan and start accruing benefits for future service in the defined contribution plan.  Participants in the defined contribution plan pay employee contributions at the same rate as other participants in SURS.  State contributions to the defined contribution plan are made at a uniform rate, no higher than the employer’s normal cost for Tier I employees in the defined benefit plan for that year and no lower than 3 percent of earnings. The rate of state contributions to the defined contribution plan is adjusted annually.  The defined contribution plan requires five years of service in order for the participant to vest in state contributions.  Failure to vest in state contributions results in the forfeiture of state contributions and any earnings on state contributions. The defined contribution plan must provide a variety of options for investments and a variety of options for payouts to retirees and their survivors.  

State Funding Changes

HB 4065 makes four changes to the funding formula for SURS:  First, it requires the state contribution for fiscal year 2018 through fiscal year 2045 to be based on total payroll (which includes payroll that is not pensionable), but excluding payroll attributable to participants in the voluntary defined contribution plan.  Second, it requires a change in an actuarial or investment assumption that first applies in fiscal year 2018 or thereafter to be implemented in equal annual amounts over a five-year period beginning in the fiscal year in which the change first applies.  Third, it requires a change in an actuarial or investment assumption that first applied in fiscal year 2014, 2015, 2016 or 2017 to be phased-in over the years remaining in the five-year period from the fiscal year in which the change first applied, beginning in fiscal year 2018.  [For example, 80 percent of the cost of the changes that impacted the fiscal year 2017 state contribution would be implemented in equal annual amounts over the following fiscal years: 2018, 2019, 2020 and 2021.]  Fourth, it requires the fiscal year 2018 state contribution to be recertified based on changes made by the legislation.

Employer Funding Changes

Beginning in fiscal year 2019, HB 4065 requires the actual employer (university or community college) to contribute an annual amount equal to: 

(1) The normal cost of the defined benefit portion of the optional hybrid plan or the defined benefit plan (as applicable), minus the employee contributions, plus 2 percent (for its Tier III employees and Tier III employees who elect to participate in Tier II); plus 

(2) The amount required for that fiscal year to amortize any unfunded actuarial accrued liability attributable to the employer’s account (for the defined benefits attributable to its Tier III employees and Tier III employees who elect to participate in Tier II), determined as a level percentage of payroll over a 30-year rolling amortization period; plus 

(3) The total amount of earnings in excess of $140,000 for each employee multiplied by the level percentage of payroll used in the fiscal year in which the academic year began, as determined by SURS, to be sufficient for SURS to become 90 percent funded by the end of state fiscal year 2045.

HB 4065 requires SURS to create and maintain individual employer accounts for this purpose.

HB 4065 also requires the employer to pay the present value of benefits resulting from earnings increases above CPI-U during the final rate of earnings period to SURS, for academic years beginning on or after July 1, 2018.  Earnings increases under contracts or collective bargaining agreements entered into, amended or renewed before the effective date of the legislation are excluded from this requirement.  (Current law requires an employer to pay the present value of benefits resulting from earnings increases above 6 percent during the final rate of earnings period to SURS.)

Effective Date

HB 4065 takes effect immediately upon becoming law.

Status:

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HB 4371
- State Serial Long Term Pension Obligation Bonds
Sponsor(s): Representative Robert Martwick

HB 4371 amends the General Obligation Bond Act to authorize the issuance of $107.42 billion of State Serial Long Term Pension Obligation Bonds.  The proceeds of the bonds must be deposited directly into the State Serial Long Term Pension Obligation Bond Fund.  Moneys in the fund can only be used to make payments to the state pension systems on a pro-rated basis in an amount sufficient to bring the actuarially accrued unfunded liability of each individual fund to a 90 percent level.  

HB 4371 requires the State Employees’ Retirement System, State Universities Retirement System and Teachers’ Retirement System to each establish a designated investment fund for 36 percent of the bond proceeds received from any issuance of State Serial Long Term Pension Obligation Bonds.  Each designated investment fund must be used solely for the purpose of taking advantage of interest arbitrage from the bond proceeds and for making debt service contributions related to the bonds.

HB 4371 authorizes the State Serial Long Term Pension Obligation Bonds to be issued and sold from time to time, in one or more series, in such amounts and at such prices as may be directed by the governor, upon recommendation by the director of the Governor’s Office of Management and Budget.  The term of such bonds cannot exceed 30 years.

HB 4371 also amends the State Pension Fund Continuing Appropriation Act to provide a continuing appropriation of all amounts necessary for the payment of principal and interest due on State Serial Long Term Pension Obligation Bonds.

HB 4371 takes effect immediately upon becoming law.

Filed with the Clerk on January 30, 2018. 

Status:

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HB 4411
- No Lobbyists for Multiple Pension Systems
Sponsor(s): Representative Carol Ammons

HB 4411 amends the General Provisions Article of the Illinois Pension Code.  It prohibits the State Employees’ Retirement System, State Universities Retirement System, Teachers’ Retirement System, Chicago Teachers’ Pension Fund and Illinois State Board of Investment from entering into a contract for lobbying services with a lobbyist who represents one of the other aforementioned retirement systems or investment boards.  

HB 4411 takes effect immediately upon becoming law.

Filed with the Clerk on January 30, 2018.

Status:

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HB 4412
- SURS Senior Administrative Staff Composition
Sponsor(s): Representative Carol Ammons

HB 4412 amends the SURS Article of the Illinois Pension Code.  It requires the SURS Board of Trustees to make its best efforts to ensure that the racial and ethnic makeup of the System’s senior administrative staff represents the racial and ethnic makeup of the System’s membership.  It defines senior administrative staff as including, but not limited to, the executive director, chief investment officer, general counsel and Freedom of Information officer, chief financial officer, director of member services, director of outreach, director of human resources, director of internal audit, director of operations, and director of application development and research.  

HB 4412 takes effect immediately upon becoming law.

Filed with the Clerk on January 30, 2018.

Status:

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HB 4413
- Public Broadcast of Pension System Board Meetings
Sponsor(s): Representative Carol Ammons

HB 4413 amends the General Provisions Article of the Illinois Pension Code.  It requires any open meeting of the board of trustees of a retirement system or pension fund or any committee established by a retirement system or pension fund to be broadcast to the public and maintained in real-time on the retirement system or pension fund’s website using a high-speed Internet connection.

HB 4413 takes effect immediately upon becoming law.

Filed with the Clerk on January 30, 2018.

Status:

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HB 4414
- Pension System Executive Director and CIO Senate Confirmation
Sponsor(s): Representative Carol Ammons

HB 4414 amends the State Employees’ Retirement System, State Universities Retirement System, Teachers’ Retirement System and Chicago Teachers’ Pension Fund Articles of the Illinois Pension Code.  It requires appointments to the position of executive director or chief investment officer to be made with the advice and consent of the Senate.  For the Chicago Teachers’ Pension Fund, the position of chief legal officer must also be made with the advice and consent of the Senate. 

HB 4414 takes effect immediately upon becoming law.

Filed with the Clerk on January 30, 2018.

Status:

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HB 4684
- SURS Comptroller Intercept
Sponsor(s): Representative Robert Martwick

HB 4684 amends the State Universities Retirement System’s Article of the Illinois Pension Code. It enhances SURS’ ability to obtain delinquent employer payments that are owed under the law by intercepting them through the state Comptroller and/or the county treasurer for the county in which the employer is located.

Under current law, SURS has the ability to obtain delinquent employer payments through the state Comptroller under the return to work law for affected annuitants (Section 15-139.5) and under legal requirements that employers provide information necessary for the administration of the System and employer audits (Sections 15-168 and 15-168.2). HB 4684 permits SURS to obtain delinquent employer payments under these laws from the county treasurer for the county in which the employer is located. HB 4684 also permits SURS to obtain delinquent employer payments through the state Comptroller and/or the county treasurer for amounts owed under other employer contribution laws, such as those pertaining to the 6% Rule (Section 15-155(g)), the Governor’s Salary Rule (Section 15-155(j-5)), employer normal cost contributions from certain employers (Section 15-155(b)), employee contributions that are “picked-up” by the employer (Sections 15-181 and 15-157.1), and employer contributions under the Self-Managed Plan (Section 15-158.2).

HB 4684 takes effect immediately upon becoming law.

HB 4684 is identical to SB 2954 of the 100th General Assembly.

Status:

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HB 4839
- Pension Reform
Sponsor(s): Representative Jeanne M. Ives

HB 4839 amends the General Provisions, General Assembly Retirement System, Illinois Municipal Retirement Fund, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System, Judges Retirement System, and Reciprocal Retirement System articles of the Illinois Pension Code.  

Restrictions on Pensionable Earnings and Service Credit

HB 4839 prohibits payments for unused sick or vacation time from counting towards the final rate of earnings of individuals who first become participants in SURS on or after the effective date of the legislation.  HB 4839 also prohibits individuals who first become participants in SURS on or after the effective date of the legislation from receiving service credit for unused sick leave.

Employee Non-Participation in SURS

HB 4839 establishes that a person is not required to participate in SURS.  An active employee may terminate his or her participation in SURS (including active participation in the Tier III Plan, if applicable) by notifying SURS in writing.  An active employee terminating participation in SURS is entitled to a refund of his or her contributions (other than contributions to the Self-Managed Plan or the Tier III Plan) minus the benefits received prior to the termination of participation.

Tier III Defined Contribution Plan

HB 4839 requires SURS to prepare and implement a Tier III defined contribution plan by July 1, 2019.  SURS must utilize the framework of the Self-Managed Plan and must endeavor to adapt the benefits and structure of the Self-Managed Plan to the Tier III plan.  Tier I participants and Tier II participants may make a voluntary, irrevocable election to stop accruing benefits in the defined benefit plan and start accruing benefits for future service in the Tier III defined contribution plan.  Additionally, all persons who first become participants in SURS on or after July 1, 2019, must participate in the Tier III defined contribution plan.  Participants in the Tier III defined contribution plan will receive any applicable retiree health insurance benefits.

A Tier I or Tier II member who elects to participate in the Tier III defined contribution plan may irrevocably elect to terminate all participation in the defined benefit plan. Upon such election, SURS must transfer an amount equal to the amount of the contribution refund that the member would be eligible to receive, including interest at the effective rate for the respective years, to the member’s individual account in the defined contribution plan.  

Participant contributions to the Tier III defined contribution plan are at the rate of 8 percent of earnings.  State contributions to the Tier III defined contribution plan are at the rate of 7.6 percent of earnings (minus an amount to cover the cost of any defined disability benefits offered under the defined contribution plan).   Tier III participants must have one year of service credit in the defined contribution plan to vest in state contributions.  Failure to vest results in the forfeiture of state contributions and any earnings thereon.  

The Tier III defined contribution plan must offer a variety of options for investments, including investments handled by SURS as well as private sector investment options; provide a variety of options for payouts to inactive participants and their survivors; and, to the extent authorized under federal law and as authorized by SURS, allow former participants to transfer or roll over employee and vested state contributions, and the earnings thereon, from the Tier III defined contribution plan into other qualified retirement plans.

Accelerated Pension Benefit Payment Option

HB 4839 creates an accelerated pension benefit payment option.  Eligible SURS members may elect the accelerated pension benefit payment option between January 1, 2019, and July 1, 2019.  An eligible SURS member is a person who has terminated service; has accrued the necessary service credit for retirement; has not received a retirement annuity from SURS; does not have a QILDRO in effect against him or her under SURS; and is not a participant in the Self-Managed Plan.  By January 1, 2019, SURS must calculate the net present value of pension benefits for each eligible person.  SURS must offer each eligible person the opportunity to irrevocably elect to receive an accelerated pension benefit payment equal to 70 percent of the net present value of his or her pension benefits in lieu of receiving any pension benefit from SURS.   The accelerated pension benefit payment must be rolled into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended.  Upon receipt of an accelerated pension benefit payment, credits and creditable service under SURS are terminated.  If the member subsequently returns to active service under SURS, then any subsequent pension benefits are based on the credits and creditable service accrued after the return to active service.  The accelerated pension benefit payment cannot be repaid to SURS and previously terminated credits and creditable service cannot be reinstated under SURS.  A SURS member who receives an accelerated pension benefit payment will still receive any applicable retiree health insurance benefits. 

Employer Funding Changes

HB 4839 ends the requirement that the employer pay the present value of the increase in benefits resulting from earnings increases above 6% during the final rate of earnings period to SURS.  Instead, HB 4839 provides that, beginning in fiscal year 2020, if a contract or collective bargaining agreement entered into, amended, or renewed on or after the effective date of the legislation provides for earnings to exceed the salaries provided under the preceding contract or collective bargaining agreement, then the employer must pay the current value of the projected amount of the resulting increase in benefits, reflecting whether the participants are Tier I or Tier II members, to SURS.  

Repeal of Public Act 100-0023

HB 4839 repeals many of the provisions of Public Act 100-0023, which created the Optional Hybrid Plan.  It does not repeal the provisions that became effective on July 6, 2017, which were: the Governor’s salary rule, the smoothing of the costs of any changes in actuarial assumptions, and the recertification of the FY 2018 state contribution.

Effective Date

HB 4839 takes effect immediately upon becoming law.

Status:

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HB 5013
- Downstate Police and Firefighters Investment Consolidation
Sponsor(s): Representative Ryan Spain

HB 5013 amends the General Provisions, Regulation of Public Pension Fund, Downstate Policemen’s Pension Fund and Downstate Firefighters’ Pension Fund articles of the Illinois Pension Code. It also adds two new articles to the Illinois Pension Code: the Downstate Police Pension Investment Board article and the Downstate Firefighter Pension Investment Board article.

HB 5013 increases the amount of the annual compliance fee paid by public pension funds and retirement systems (except for Downstate Police and Firefighters Pension Funds) to the Department of Insurance from $8,000 to $16,000. (For Downstate Police and Firefighters Pension Funds, the amount of the annual compliance fee is increased from two basis points to four basis points of the total assets of the pension fund, but not more than $16,000).

HB 5013 also extends laws governing penalties for non-compliance with the Illinois Pension Code to apply to any pension fund (currently, such laws only apply to any governmental unit) that is subject to any law establishing a pension fund or retirement system for the benefit of employees of the governmental unit. Specifically, HB 5013 provides that whenever the Public Pension Division of the Illinois Department of Insurance determines that the governing body or any elected or appointed official or official of a governmental unit has failed to comply with any provision of the Illinois Pension Code, then the director of the Illinois Department of Insurance must notify the governing body, officer, or official of the specific provisions of the law with which the person has failed to comply. Upon receiving such notice, the person must take immediate steps to comply with the provisions of law specified in the notice. If the person fails to comply within a reasonable time after receiving the notice, then the director may hold a hearing at which the person may show cause for noncompliance with the law. If upon hearing the director determines that good and sufficient cause for noncompliance has not been shown, the director may order the person to submit evidence of compliance within a specified period of not less than 30 days. If evidence of compliance has not been submitted to the director within the period of time prescribed in the order and no administrative appeal from the order has been initiated, then the director may assess a civil penalty of up to $2,000 against the governing body, officer, or official for each noncompliance with an order of the director. If a penalty is not paid within 30 days of the date of assessment, then the director must report the act of noncompliance to the Illinois attorney general, who is responsible for ensuring application is made to the circuit court of the county in which the governmental unit is located for enforcement of the penalty or for such additional relief as may be required.

HB 5013 takes effect immediately upon becoming law.

Status:

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HB 5138
- Governor’s Salary Rule Full-Time Equivalent Elimination
Sponsor(s): Representative Robert Martwick

HB 5138 amends the State Universities Retirement System and Teachers Retirement System articles of the Illinois Pension Code.

HB 5138 eliminates the requirement that the governor’s salary rule applies to a participant’s earnings as determined on a full-time equivalent basis. Under current law, if a participant’s earnings, as determined on a full-time equivalent basis, exceed the amount of salary set for the governor, then the participant’s employer must pay the employer normal cost on the portion of the participant’s earnings in excess of the governor’s salary to SURS or TRS (as applicable). HB 5138 provides that only the pensionable earnings received by the participant can be used when determining whether a participant’s earnings exceed the amount of salary set for the governor.

HB 5138 takes effect immediately upon becoming law.

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HB 5404
- Governor's Introduced FY 2019 Budget
Sponsor(s): Representative Jim Durkin

HB 5404 appropriates $1,554,498,000 for the annual required state contribution to SURS for fiscal year 2019. Of this amount, $1,414,498,000 is appropriated from the General Revenue Fund, and $140,000,000 is appropriated from the State Pensions Fund. The certified fiscal year 2019 state contribution to SURS is $1,655,154,000.

HB 5404 also appropriates $0 from the Education Assistance Fund for the state contribution to the College Insurance Program (“CIP”) for fiscal year 2019. The certified fiscal year 2019 state contribution to CIP is $4,390,811.

HB 5404 is identical to Senate Bill 3382 of the 100th General Assembly.

HB 5404 takes effect on July 1, 2018.

Status:

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HB 5472
- Accelerated Pension Benefit Payment Option
Sponsor(s): Representative Robert Martwick

HB 5472 amends the State Employees Retirement System, State Universities Retirement System and Teachers Retirement System articles of the Illinois Pension Code.

HB 5472 creates an accelerated pension benefit payment option for retirement-eligible Tier 1 members. Specifically, an eligible SURS member must: be a Tier 1 member (i.e., a person who first became a participant in SURS or a certain reciprocal retirement system before January 1, 2011); have submitted an application for a retirement annuity under SURS; meet the age and service credit requirements for retirement under SURS; not have received any retirement annuity from SURS; not be a participant in the Self-Managed Plan; and not have a QILDRO in effect against him or her under SURS. As soon as practical on or after the effective date of the legislation, SURS must calculate an accelerated pension benefit payment amount for each eligible person and offer him or her the opportunity to accept the Tier 2 automatic annual increase in retirement (the lesser of 3 percent or ½ of the percentage increase in CPI-U, simple interest, beginning on the January 1 occurring or after the later of age 67 or the first anniversary of retirement) in exchange for an accelerated pension benefit payment. The accelerated pension benefit payment is a lump-sum payment equal to 70 percent of the difference of the present value of the automatic annual increases on the Tier 1 member’s retirement annuity under the Tier 1 formula (i.e., 3 percent compounded annually, applied beginning on the January 1 occurring after retirement) and the present value of the automatic annual increases on the Tier 1 member’s retirement annuity under the Tier 2 formula (i.e., the lesser of 3 percent or ½ of the percentage increase in CPI-U, non-compounded, applied beginning on the January 1 occurring on or after the later of age 67 or the first anniversary of retirement). The accelerated pension benefit payment must be rolled into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. If a Tier 1 member who has received an accelerated pension benefit payment subsequently returns to active service under SURS, then the calculation of any future automatic annual increase in retirement annuity must be calculated under the Tier 2 formula (i.e., the lesser of 3 percent or ½ of the percentage increase in CPI-U, non-compounded, applied beginning on the January 1 occurring on or after the later of age 67 or the first anniversary of retirement). The accelerated pension benefit payment cannot be repaid to SURS.

HB 5472 takes effect immediately upon becoming law.

Status:

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HB 5674
- State-Funded Retirement Systems Annuitant Database
Sponsor(s): Representative Grant Wehrli

HB 5674 amends the General Assembly Retirement System, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System and Judges Retirement System articles of the Illinois Pension Code.

HB 5674 requires each state-funded retirement system, by July 1, 2019, to establish and post on its website a searchable database of the names of all persons receiving an annuity from the System and the amount of the annuity paid by the System to that person each month. Each System’s database must be updated on a monthly basis. No database can include the name of an annuitant under the age of 18 nor any identifying information other than the annuitant’s name and the amount of the annuity paid to him or her each month.

HB 5674 takes effect immediately upon becoming law.

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HJR 106
- Oppose Tax on Retirement Income
Sponsor(s): Representative David McSweeney

HR 106 resolves that the House of Representatives and Senate of the state of Illinois believe that the Illinois Income Tax Act should not be amended to permit taxing retirement income.

Status:

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