Bill Text: IL SB1673 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Cook County Article of the Illinois Pension Code. Provides that "re-entrant" does not include any employee who enters service after January 1, 2011 and whose retirement age is 67.

Spectrum: Bipartisan Bill

Status: (Failed) 2013-01-08 - Session Sine Die [SB1673 Detail]

Download: Illinois-2011-SB1673-Amended.html

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Rep. Elaine Nekritz

Filed: 1/8/2013

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AMENDMENT TO SENATE BILL 1673
AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 1. Short title. This Act may be cited as the
Pension Review Commission Act.
Section 5. Pension Review Commission. The Pension Review
Commission, hereinafter called the "Commission", is hereby
created and shall be comprised of eight Commissioners. Within
fifteen calendar days following the effective date of this
amendatory Act of the 97th General Assembly, the Speaker of the
House of Representatives, the President of the Senate, the
Minority Leader of the House of Representatives and the
Minority Leader of the Senate shall each appoint two
Commissioners.
Commissioners shall be at least 18 years of age, reside

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within Illinois, and shall not be required to register under
the Lobbyist Registration Act. In the event of a vacancy, the
respective appointing legislative leader shall appoint a new
member to fill the vacancy within fifteen calendar days after
the vacancy.
The Commission on Government Forecasting and
Accountability (COGFA) shall provide administrative support
and assistance to the Commission.
Section 10. Standards for Delegation of Authority.
(a) The Commission shall determine the changes to law
necessary to ensure that the State Employee Retirement System,
the General Assembly Retirement System, the State University
Retirement System, and the Teacher's Retirement System will
reach 100% actuarial funding for all then-existing liabilities
not later than December 31, 2045, calculated and defined in
full accordance with the applicable standards and guidelines of
the Governmental Accounting Standards Board.
(b) In determining the necessary changes to existing law,
the Commission shall consider the following factors:
1. the total amount of the existing unfunded
liabilities for the four retirement systems identified in
this Act;
2. the current and projected rates of growth in those
unfunded liabilities;
3. the current and future projected total required

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annual State contributions to the retirement systems; for
purposes of this Act, "total required annual State
contribution to the retirement systems" is the sum of the
amounts that the State of Illinois must pay on an
annualized basis from general revenue funds and any other
fund source to the four retirement systems identified in
this Public Act, including the normal cost of benefits
earned and payment towards the interest and principal that
comprise the unfunded accrued liabilities, as prescribed
under current law;
4. the annual cost to the State attributable to
retirement benefits earned by members as a result of
employment at entities other than State of Illinois;
5. the cost to the entities other than the State of
Illinois including but not limited to any unit of local
government attributable to retirement benefits earned by
members as a result of employment at entities other than
the State of Illinois;
6. the most costly components of the benefit structures
of the four retirement systems identified in this Public
Act, which apply or relate to any member of the four
retirement systems identified in this Act, irrespective of
whether the member is currently receiving retirement
benefits including, but not limited to the following:
a. the amounts of the cost of living adjustments
(COLA) to which members are entitled,

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b. the definition of the salary basis on which the
calculation of the member's retirement benefit is
based, commonly known as the member's "Final Average
Compensation" (FAC) (or the equivalent thereof),
c. the methods and definitions that the retirement
systems to which this Act applies use to determine:
actuarial liability, normal cost, actuarially-required
annual contribution, unfunded actuarial liabilities,
asset valuation, and other such calculations.
7. the value of public employee pension benefits in
comparable states for similar positions of employment;
8. the value of retirement benefits for comparable
services performed in the private sector in Illinois and
comparable states based on the responsibility and
discretion required in the position of employment;
9. the effect of inflation as defined and calculated by
the Bureau of Labor Statistics (BLS) of the United States
government upon retirement benefits earned by members of
the retirement systems to which this Public Act applies;
10. the amounts of employee contributions to the four
pension systems; and
11. the interests and welfare of the public and the
financial ability of the State to meet those costs.
Section 15. Public Hearings. The Commission shall conduct
public hearings prior to filing its report. Notice of hearings

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shall be made on the General Assembly website and by methods
deemed appropriate by the Commission. All interested persons
shall be provided with an opportunity to comment. Any documents
submitted to the Commission by those seeking to comment shall
be deemed public records under the Freedom of Information Act.
Section 20. Commission Report. The Commission shall file a
report including its determinations of changes to existing law,
set forth in the form of a bill, no later than April 30, 2013.
The report shall be submitted to the Clerk of the House and
Secretary of the Senate, and shall be made available on the
General Assembly website. The Commission may also file a report
on April 30 and November 1 of any calendar year in which the
Commission chooses to submit a report.
Section 25. General Assembly Disapproval of the Report.
The General Assembly may disapprove the report of the
Commission in whole within thirty legislative days after the
report is filed by adoption of a joint resolution by a record
vote of the majority of the members elected in each house. If
the General Assembly does not adopt a joint resolution
disapproving of the report, the Speaker of the House of
Representatives and the President of the Senate shall certify
the bill and it shall be presented to the Governor in
accordance with Article 4, Section 9(a) of the Illinois
Constitution. The Governor shall sign the bill and it shall

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become law. The bill shall not be certified if the General
Assembly adopts a joint resolution disapproving of the report.
Section 99. Effective date. This Act takes effect upon
becoming law.".