Bill Text: IL HB3116 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Creates the Public Pension Abuse Abatement Act. Authorizes and directs the Governor to execute a compact on behalf of the State with any other state to end abuse of public pension programs. Provides that the compacting states shall agree that no governmental employer under the jurisdiction of any state shall pay wages or salary to any public pension fund annuitant unless that annuitant elects to suspend his or her pension for the duration of his or her employment. Sets out provisions of the compact concerning definitions, the effective date, and construction and severability. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3116 Detail]

Download: Illinois-2011-HB3116-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3116 Introduced , by Rep. Charles E. Jefferson SYNOPSIS AS INTRODUCED:
New Act
Creates the Public Pension Abuse Abatement Act. Authorizes and directs the Governor to execute a compact on behalf of the State with any other state to end abuse of public pension programs. Provides that the compacting states shall agree that no governmental employer under the jurisdiction of any state shall pay wages or salary to any public pension fund annuitant unless that annuitant elects to suspend his or her pension for the duration of his or her employment. Sets out provisions of the compact concerning definitions, the effective date, and construction and severability. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Public
Pension Abuse Abatement Act.
Section 5. Public Pension Abuse Abatement Compact. The
Governor is hereby authorized and directed to execute a compact
on behalf of this State with any other state or states legally
joining therein in the form substantially as follows:
PUBLIC PENSION ABUSE ABATEMENT COMPACT
The compacting states solemnly agree:
ARTICLE I:
FINDINGS AND PURPOSE
(a) It is common practice and a form of pension abuse for
an individual to receive a public retirement annuity and then
return to work and receive wages or salary from a governmental
employer while continuing to receive their retirement annuity.
This practice allows for an individual to receive multiple
streams of revenue from governmental employers.
(b) The purpose of a retirement annuity is to provide
retirement income and security to an individual at the end of
his or her lifespan. It is not the purpose of a retirement
annuity to supplement an individual's salary.

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(c) The goal of this compact is to end the practice of an
individual receiving a retirement annuity based upon public
service and then returning to work and receiving wages or
salary from a public employer.
(d) Each compacting state agrees to enact the following
hiring policy:
No governmental employer under the jurisdiction of any
state that agrees to this compact shall pay wages or salary
to any public pension fund annuitant unless that public
pension fund annuitant elects to suspend his or her pension
for the duration of his or her employment.
ARTICLE II:
DEFINITIONS
As used in this compact, unless the context clearly
requires a different construction:
"Public retirement annuity" means a retirement annuity
paid to an individual that is based on service with a
governmental employer.
"Governmental employer" means an employer financed through
public funds, the employees of which are eligible to
participate in a public pension plan.
"Public pension fund annuitant" means an individual
receiving a public retirement annuity.
ARTICLE III:
EFFECTIVE DATE
This compact shall enter into force and become effective

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and binding when it has been enacted by the legislature of any
state of the Union and thereafter shall enter into force and
become effective and binding as to any other state when enacted
by its legislature.
ARTICLE IV:
CONSTRUCTION AND SEVERABILITY
The provisions of this compact shall be liberally construed
and shall be severable. If any phrase, clause, sentence, or
provision of this compact is declared to be contrary to the
constitution of any participating state or of the United
States, or the applicability of this compact to any government,
agency, person, or circumstance is held invalid, the validity
of the remainder of this compact and its applicability to any
government, agency, person, or circumstance shall not be
affected thereby. If this compact shall be held contrary to the
constitution of any state participating therein, the compact
shall remain in full force and effect as to the remaining
states and in full force and effect as to the state affected as
to all severable matters.
Section 99. Effective date. This Act takes effect upon
becoming law.