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 3073
- Accelerated Pension Benefit Payment Option
Sponsor(s): Senator Paul Schimpf

SA #1 to SB 3073 re-inserts the original legislation with the following change: it requires the accelerated pension benefit payment to be equal to 75 percent (instead of 70 percent) of the net present value of the eligible member’s pension benefits.

SB 3073 amends the State Employees Retirement System, State Universities Retirement System and Teachers Retirement System articles of the Illinois Pension Code.

SB 3073 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, 2019, 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.

SB 3073 takes effect immediately upon becoming law.

Status:

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SB 3382
- Governor's Introduced FY 2019 Budget
Sponsor(s): Senator William E. Brady

SB 3382 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.

SB 3382 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.

SB 3382 is identical to House Bill 5404 of the 100th General Assembly.

SB 3382 takes effect on July 1, 2018.

Status:

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SB 3545
- No Investments in Major Opioid Manufacturers
Sponsor(s): Senator Andy Manar

SB 3545 amends the General Provisions article of the Illinois Pension Code.

SB 3545 prohibits the state-funded retirement systems from investing in major opioid manufacturers. By July 1, 2019, the Illinois Investment Policy Board must make its best efforts to identify all major opioid manufacturers and include those companies in the list of restricted companies distributed to each retirement system for this purpose.

SB 3545 takes effect in accordance with the Effective Date of Laws Act.

Status:

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SB 3622
- Repeal 3% Rule and Re-Enact 6% Rule
Sponsor(s): Senator Dale Fowler

SB 3622 amends the State Universities Retirement System and Teachers’ Retirement System articles of the Illinois Pension Code.

SB 3622 repeals the 3% rule and re-enacts the 6% rule.  Specifically, SB 3622 repeals provisions requiring employers to pay the present value of the resulting increase in benefits attributable to earnings increases in excess of 3 percent during an employee’s final rate of earnings period to SURS.  The 3% rule became effective for academic years beginning on or after July 1, 2018.  SB 3622 re-enacts provisions requiring employers to pay the present value of the resulting increase in benefits attributable to earnings increases in excess of 6 percent during an employee’s final rate of earnings period to SURS.  The 6% rule was effective for academic years beginning on or after June 1, 2005 and before July 1, 2018.  Under SB 3622, the employer must pay the present value of the resulting increase in benefits attributable to earnings increases in excess of 6% (instead of 3%) to SURS.  SB 3622 makes the same changes to TRS.

SB 3622 takes effect immediately upon becoming law.

SB 3622 is identical to HB 5937 of the 100th General Assembly.

Status:

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SB 3638
- Emerging Investment Manager RFP Exemption
Sponsor(s): Senator Iris Y. Martinez

SB 3638 amends the General Provisions Article of the Illinois Pension Code. It includes MWDBE investment managers with assets of less than $10 million or more than $10 billion in the definition of an “emerging investment manager” if the MWDBE manager had assets of at least $10 million but less than $10 billion at the time of the initial contract with the retirement system, pension fund, or investment board.

SB 3638 also exempts contracts for investment services with an emerging investment manager from competitive-bidding requirements. Under current law, the following contracts are exempt from competitive-bidding requirements: (1) sole source procurements; (2) emergency procurements; (3) at the discretion of the pension fund, retirement system, or investment board, contracts that are nonrenewable and one year or less in duration, so long as the contract has a value of less than $20,000; and (4) in the discretion of the pension fund, retirement system, or investment board, contracts for follow-on funds with the same fund sponsor through closed-end funds.

SB 3638 takes effect immediately upon becoming law.

Status:

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SB 3639
- Public Broadcast of Pension System Board Meetings
Sponsor(s): Senator Iris Y. Martinez

SB 3639 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 thereof, 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. SB 3639 requires both audio and video to be made available for meetings that are broadcast and maintained. SB 3639 exempts downstate police and downstate firefighters’ pension funds from these requirements.

SB 3639 takes effect on December 31, 2020.

SB 3639 is similar to House Bill 4413 of the 100th General Assembly.

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.

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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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SR 1413
- Oppose Pension Cost Shift to Local Employers
Sponsor(s): Senator Thomas Cullerton

SR 1413 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.

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