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.

Senate

SB 2172
- Pension Reform
Sponsor(s): Senator Michael Connelly

SB 2172 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

SB 2172 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 one 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.  

The actual employer (university or community college) must contribute an amount equal to the normal cost of the defined benefit portion of the optional hybrid plan, minus the employee contributions, plus 2 percent.  SURS must annually certify the amount of unfunded liability accrued in each employer’s account to be paid by the employer so that SURS becomes 90 percent funded by fiscal year 2045.  The actual employer must also contribute an amount equal to the employer portion of the defined contribution portion of the optional hybrid plan, as set on an individual employee basis.

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 had not taken effect, based on the law in effect on May 31, 2019.  Beginning in fiscal year 2021, the 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

SB 2172 creates an accelerated pension benefit payment option for the first 10 percent of eligible SURS members each year.  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, 2018, and annually thereafter, 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. 

Voluntary Defined Contribution Plan

SB 2172 requires SURS to provide a voluntary defined contribution plan for up to 5 percent of Tier I employees by July 1, 2018.  Under the defined contribution plan, a Tier 1 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 1 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 the 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

SB 2172 makes three 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, beginning in fiscal year 2018, it requires any increases or decreases attributable to changes in the System’s actuarial and investment assumptions to be phased-in over a five-year period.  Third, it requires the fiscal year 2018 state contribution to be recertified based on changes made by the legislation.

Employer Funding Changes

SB 2172 provides that, for academic years beginning on or after July 1, 2018, if a participant’s earnings exceed the amount of his or her earnings with the same employer for the previous academic year by more than the increase in CPI-U for any year during the final rate of earnings period, then the employer must pay the present value of the resulting increase in benefits to SURS.  Earnings increases under contracts or collective bargaining agreements entered into, amended or renewed before the effective date of the legislation are excluded from this provision.  (Current law provides that if a participant’s earnings exceed the amount of his or her earnings with the same employer for the previous academic year by more than 6 percent during the final rate of earnings period, then the employer must pay the present value of the resulting increase in benefits to SURS.)

Additionally, for academic years beginning on or after July 1, 2018, if a participant’s earnings exceed $140,000, then the employer must pay a contribution to SURS for the portion of earnings in excess of that amount.  The employer contribution equals the amount of earnings in excess of $140,000 multiplied by the level percentage of payroll needed for SURS to become 90 percent funded by fiscal year 2045.

Effective Date

SB 2172 takes effect immediately upon becoming law.

Status:

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SB 2173
- Pension Reform
Sponsor(s): Senator Michael Connelly

SB 2173 amends the General Assembly Retirement System, State Employees Retirement System, State Universities Retirement System, Teachers Retirement System and Chicago Teachers Retirement System articles of the Illinois Pension Code.

Tier I Offer and Consideration Pension Reform

SB 2173 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

SB 2173 requires the fiscal year 2019 state contribution to be recertified based on changes made by the legislation.

Effective Date

SB 2173 takes effect immediately upon becoming law.

Status:

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SB 2194
- Pension Reform
Sponsor(s): Senator Christine Radogno

SB 2194 amends the State Employees Retirement System, State Universities Retirement System, Teachers Retirement System, and Chicago Teachers Retirement System articles of the Illinois Pension Code.  

Tier I Offer and Consideration Pension Reform

SB 2194 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

SB 2194 requires the fiscal year 2019 state contribution to be recertified based on changes made by the legislation.

Effective Date

SB 2194 takes effect immediately upon becoming law.

Status:

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SB 2195
- Pension Reform
Sponsor(s): Senator Christine Radogno

SB 2195 amends the State Employees Retirement System, State Universities Retirement System, Teachers Retirement System, and Chicago Teachers Pension Fund articles of the Illinois Pension Code.

Optional Hybrid Plan

SB 2195 creates an optional hybrid plan for individuals who first become participants of SURS on or after 6 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 6 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 one 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.  

The actual employer (university or community college) must contribute an amount equal to the normal cost of the defined benefit portion of the optional hybrid plan, minus the employee contributions, plus 2 percent.  SURS must annually certify the amount of unfunded liability accrued in each employer’s account to be paid by the employer so that SURS becomes 90 percent funded by fiscal year 2045.  The actual employer must also contribute an amount equal to the employer portion of the defined contribution portion of the optional hybrid plan, as set on an individual employee basis.

Accelerated Pension Benefit Payment Option

SB 2195 creates an accelerated pension benefit payment option for the first 10 percent of eligible SURS members each year.  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, 2018, and annually thereafter, 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 participating employee status under SURS, then any subsequent pension benefits are based on the credits and creditable service accrued after the return to participating employee status.  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. 

Voluntary Defined Contribution Plan

SB 2195 requires SURS to provide a voluntary defined contribution plan for up to 5 percent of Tier I employees by July 1, 2018.  Under the defined contribution plan, a Tier 1 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 1 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 the 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

SB 2195 makes three 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, beginning in fiscal year 2018, it requires any increases or decreases attributable to changes in the System’s actuarial and investment assumptions to be phased-in over a five-year period.  Third, it requires the fiscal year 2018 state contribution to be recertified based on changes made by the legislation.

Employer Funding Changes

SB 2195 provides that, for academic years beginning on or after July 1, 2018, if a participant’s earnings exceed the amount of his or her earnings with the same employer for the previous academic year by more than the increase in CPI-U for any year during the final rate of earnings period, then the employer must pay the present value of the resulting increase in benefits to SURS.  Earnings increases under contracts or collective bargaining agreements entered into, amended or renewed before the effective date of the legislation are excluded from this provision.  (Current law provides that if a participant’s earnings exceed the amount of his or her earnings with the same employer for the previous academic year by more than 6 percent during the final rate of earnings period, then the employer must pay the present value of the resulting increase in benefits to SURS.)

Additionally, for academic years beginning on or after July 1, 2018, if a participant’s earnings exceed $140,000, then the employer must pay a contribution to SURS for the portion of earnings in excess of that amount.  The employer contribution equals the amount of earnings in excess of $140,000 multiplied by the level percentage of payroll needed for SURS to become 90 percent funded by fiscal year 2045.

Effective Date

SB 2195 takes effect immediately upon becoming law.

Status:

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SB 2197
- SURS Normal Cost Shift
Sponsor(s): Senator Kyle McCarter

SB 2197 amends the State Universities Retirement System article of the Illinois Pension Code.

SB 2197 requires the actual employer to pay the full employer’s normal cost of the benefits earned by its employees to SURS on a payroll-by-payroll basis. The employer normal cost rate is a percentage of earnings determined by SURS on a system-wide basis and certified by SURS to all employers for use in the applicable fiscal year.

SB 2197 requires SURS to certify the employer normal cost rate as soon as possible after the effective date of the legislation to employers for use in the remaining portion of the current fiscal year and by November 1st annually for use in the next fiscal year.

SB 2197 also requires SURS to recalculate and recertify the required State contribution for the current fiscal year based on the changes made by the legislation.

SB 2197 takes effect immediately upon becoming law.

Status:

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SR 0113
- Oppose Tax on Retirement Income
Sponsor(s): Senator Thomas Cullerton

SR 113 resolves that the Illinois Senate believes that the Illinois Income Tax Act should not be amended to permit taxing retirement income.

Status:

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SR 0545
- Oppose Pension Cost Shift to Local Employers
Sponsor(s): Senator Sue Rezin

SR 545 resolves that the Illinois Senate believes that an educational pension cost shift is financially wrong and would only serve to shift pension burdens from the state to the status of an unfunded mandate.

Status: Senate Referred to Assignments Committee on May 26, 2017.

Status:

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Appropriations

SB 2181
- FY 2017 and FY 2018 Budget Implementation Act
Sponsor(s): Senator William E. Brady

SB 2181 creates the Fiscal Year 2017 and Fiscal Year 2018 Budget Implementation Act.

As it relates to SURS, SB 2181 amends the State Finance Act and the Uniform Disposition of Unclaimed Property Act to authorize the use of money in the State Pensions Fund as part of the annual required state contribution to SURS for Fiscal Year 2018.

SB 2181 also amends the State Employees Group Insurance Act of 1971 and the State Pension Funds Continuing Appropriation Act to end the continuing appropriation of the annual certified State contribution for the College Insurance Program.

Finally, SB 2181 caps state general funds spending for fiscal year 2018 through fiscal year 2022 at $36 billion annually, except for: increases over amounts appropriated in fiscal year 2018 due to the certified state contributions to the five state-funded retirement systems; increases over amounts transferred in fiscal year 2018 pursuant to the General Obligation Bond Act; and increases over payments made in fiscal year 2018 necessary to cover state obligations of the State Employees Group Insurance Act of 1971. If the auditor general reports that state spending has exceeded the cap for the fiscal year, and if the General Assembly does not pass legislation to reduce state spending to a level at or below the cap, then, for the purposes of reducing state spending to a level at or below the cap, the governor may designate amounts to be set aside as a reserve from the amounts appropriated from the state general funds for all boards, commissions, agencies, institutions, authorities, colleges, universities, and bodies politic and corporate of the state. The amounts placed in reserves cannot be transferred, obligated, encumbered, expended or otherwise committed unless so authorized by law. Any public act authorizing the use of amounts placed in reserve by the governor is considered state spending, unless the public act authorizes the use of amounts placed in reserves in response to a fiscal emergency declared by the governor.

SB 2181 takes effect immediately upon becoming law.

Status:

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SB 2182
- FY 2017 and FY 2018 Budget
Sponsor(s): Senator William E. Brady

SB 2182 appropriates $1,481,426,000 from the General Revenue Fund to SURS as part of the annual required state contribution for fiscal year 2017. SB 2182 also appropriates $4,309,111 from the General Revenue Fund for the College Insurance Program for fiscal year 2017. These appropriations take effect immediately upon becoming law.

Public Acts 99-0523 and 99-0524 (The Fiscal Year 2016 and Fiscal Year 2017 Stopgap Budget) appropriated $190 million from the State Pensions Fund as part of the annual required state contribution to SURS for fiscal year 2017. When added to the amounts contained in SB 2182, the total appropriation for the annual required state contribution to SURS for fiscal year 2017 equals $1,671,426,000, which is the amount of the total certified state contribution for fiscal year 2017. $4,309,111 is the amount of the certified state contribution to the College Insurance Program for fiscal year 2017.

SB 2182 appropriates $1,461,685,000 to SURS as part of the annual required State contribution for Fiscal Year 2018. Of this amount, $1,306,685,000 is appropriated from the General Revenue Fund, and $155,000,000 is appropriated from the State Pensions Fund. SB 2182 also appropriates $3,307,000 from the General Revenue Fund for the College Insurance Program for Fiscal Year 2018. These appropriations take effect on July 1, 2017.

The certified State contribution to SURS for fiscal year 2018 is $1,753,685,000. The certified state contribution to the College Insurance Program for fiscal year 2018 is $4,133,336.

SB 2182 does not take effect unless Senate Bill 2178 of the 100th General Assembly (The Budget Management and Control Act), as introduced in the Illinois Senate, becomes law.

Status:

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SB 2198
- Re-Issuance of Bonds to Retire FY 2011 Pension Bonds
Sponsor(s): Senator Jim Oberweis

SB 2198 amends the General Obligation Bond Act.

SB 2198 authorizes the re-issuance of $2.2 billion worth of General Obligation Bonds to retire outstanding bonds issued to finance the Fiscal Year 2011 State contribution to the State-funded retirement systems.

SB 2198 takes effect in accordance with the Effective Date of Laws Act.

Status:

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SB 2205
- State Pension Obligation Acceleration Bonds
Sponsor(s): Senator Kyle McCarter

SB 2205 amends the Illinois Finance Authority Act and the General Obligation Bond Act to authorize the Illinois Finance Authority to issue up to $250 million in State Pension Obligation Acceleration Bonds if the amount appropriated for accelerated pension benefit payments is less than the amount required for those payments. SB 2205 creates a continuing appropriation for the payment of principal and interest due on State Pension Obligation Acceleration Bonds.

SB 2205 also authorizes the State to issue up to $7 billion worth of State General Obligation Restructuring Bonds for the purpose of paying vouchers (bills) incurred by the State prior to July 1, 2017.

Finally, SB 2205 amends the State Finance Act to cap State general funds spending for Fiscal Year 2018 through Fiscal Year 2025 at $31.374 billion annually. If the Auditor General reports that State spending has exceeded the cap for the fiscal year, and if the General Assembly does not pass legislation to reduce State spending to a level at or below the cap, then, for the purposes of reducing State spending to a level at or below the cap, the Governor may designate amounts to be set aside as a reserve from the amounts appropriated from the State general funds for all boards, commissions, agencies, institutions, authorities, colleges, universities, and bodies politic and corporate of the State. The amounts placed in reserves cannot be transferred, obligated, encumbered, expended, or otherwise committed unless so authorized by law. Any Public Act authorizing the use of amounts placed in reserve by the Governor is considered State spending, unless the Public Act authorizes the use of amounts placed in reserves in response to a fiscal emergency declared by the Governor.

SB 2205 takes effect immediately upon becoming law.

Status:

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SB 2214
- Fiscal Year 2017 and Fiscal Year 2018 Budget
Sponsor(s): Senator William E. Brady

Fiscal Year 2017:

SB 2214 appropriates $1,481,426,000 from the General Revenue Fund (“GRF”) as part of the FY 2017 state contribution to SURS.  Previously, Public Act 99-0524 appropriated $190,000,000 from the State Pensions Fund to SURS as part of the FY 2017 state contribution.  When added together, these amounts equal the certified FY 2017 state contribution to SURS ($1,671,426,000).  SURS has been receiving payments for the GRF portion of the FY 2017 state contribution under the State Pension Funds Continuing Appropriation Act.

SB 2214 also appropriates $4,309,111 from the General Revenue Fund for the FY 2017 state contribution to the College Insurance Program (CIP), which provides health insurance to community college retirees.  This amount equals the certified FY 2017 state contribution to CIP.  Payment of the FY 2017 state contribution to CIP has been initiated under the State Pension Funds Continuing Appropriation Act.

Fiscal Year 2018:

SB 2214 appropriates $1,461,685,000 for the FY 2018 state contribution to SURS.  Of this amount, $1,306,685,000 comes from the General Revenue Fund and $155,000,000 comes from the State Pensions Fund.  The certified FY 2018 state contribution to SURS is $1,753,685,000.

SB 2214 also appropriates $2,755,000 from the General Revenue Fund for the FY 2018 state contribution to the College Insurance Program (CIP), which provides health insurance to community college retirees.  The certified FY 2018 state contribution to CIP is $4,133,336.

Effective Date:

The provisions under SB 2214 related to FY 2017 take effect immediately upon becoming law, and the provisions under SB 2214 related to FY 2018 take effect on July 1, 2017.

Status:

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SB 2217
- FY 2017 and FY 2018 Budget Implementation Act
Sponsor(s): Senator William E. Brady

SB 2217 creates the FY2017 and FY2018 Budget Implementation Act.  It makes the following changes related to SURS:

Fiscal Year 2018 State Contribution:

SB 2217 amends the funding formula under the SURS article of the Illinois Pension Code to establish the annual required state contribution to SURS as $1,461,685,000 for FY 2018.  The FY 2018 certified state contribution to SURS is $1,753,685,000.

SB 2217 amends the State Finance Act and the Uniform Disposition of Unclaimed Property Act to authorize the use of money in the State Pensions Fund as part of the annual required state contribution to SURS for FY 2018.

College Insurance Program Funding:

SB 2217 amends the State Employees Group Insurance Act of 1971 and the State Pension Funds Continuing Appropriation Act to end the continuing appropriation of the annual certified state contribution for the College Insurance Program (“CIP”), which provides health insurance to community college retirees, upon the conclusion of FY 2017. 

State Finance Act:

SB 2217 amends the State Finance Act to authorize the governor to designate a contingency reserve from amounts appropriated from funds held by the state Treasurer for fiscal years 2018 through 2021 to any agency, including amounts appropriated pursuant to a statutory continuing appropriation.  However, the governor cannot designate a contingency reserve from amounts that have been appropriated: (1) for payment of debt service; (2) to the State Board of Education for evidence-based funding to the common schools; (3) to the State Board of Education for grants or aid for early childhood education; (4) for contributions to the state-funded retirement systems; or (5) to the Attorney General, Secretary of State, Treasurer, Comptroller or any legislative or judicial branch agency or office.

Illinois Income Tax Act:

SB 2217 amends the Illinois Income Tax Act to establish the state spending limitation for fiscal years 2018 through 2022 as $36 billion annually, except for: (1) increases over amounts as required to be paid to the state-funded retirement systems; (2) increases in amounts required to be transferred for the payment of principal and interest on bonds under the General Obligation Bond Act; or (3) increases in payments to cover state obligations of the State Employees Group Insurance Act of 1971.   If the Auditor General reports that state spending has exceeded the limitation for the fiscal year, and if the General Assembly does not pass legislation to reduce state spending to a level at or below the limitation, the governor may designate amounts to be set aside as a reserve from the amounts appropriated from the state general funds for all boards, commissions, agencies, institutions, authorities, colleges, universities, and bodies politic and corporate of the state, but not other constitutional officers, the legislative or judicial branch, the Office of the Executive Inspector General or the Executive Ethics Commission.  The amounts placed in reserves cannot be transferred, obligated, encumbered, expended or otherwise committed unless so authorized by law.  Any public act authorizing the use of amounts placed in reserve by the governor is considered state spending, unless the public act authorizes the use of amounts placed in reserves in response to a fiscal emergency declared by the governor.

Effective Date:

SB 2217 takes effect immediately upon becoming law.

Status:

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