Illinois 98th Regular Session Status: Passed House

HB 1277 — PENCD-ST SYS-NEW COST METHOD

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 98th Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Pension Code. In the current funding provisions of the 5 State-funded retirement systems, changes the actuarial cost method from "projected unit credit" to "entry age normal". Effective immediately.

Bill Text

What changed in the latest version

48 added · 69 removed

Plain-language change summary

The changes made to Bill HB 1277 include replacing the existing funding method for the state's retirement systems from "projected unit credit" to "entry age normal." This shift in the actuarial cost method could lead to different calculations for pension funding levels, which may have significant implications for how the state's retirement systems are financed. Essentially, this change aims to improve the accuracy and stability of retirement funding, ensuring that funds are available for future pension payments. This matters because proper funding helps protect the financial security of retirees and can affect the state's budget.

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*LRB09807116EFG37177b* HB1277 98TH GENERAL ASSEMBLY State of Illinois and 2014 HB1277 by Rep.
HB1277 Engrossed LRB098 07116 EFG 37177 b AN ACT concerning public employee benefits.
Darlene J.
Senger SYNOPSIS AS INTRODUCED:
ILCS 5/2-124 from Ch.
108 1/2, par.
2-124 ILCS 5/14-131 ILCS 5/15-155 from Ch.
108 1/2, par.
15-155 ILCS 5/16-158 from Ch.
108 1/2, par.
16-158 ILCS 5/18-131 from Ch.
108 1/2, par.
18-131 Amends the Illinois Pension Code.
In the current funding provisions of the 5 State-funded retirement systems, changes the actuarial cost method from "projected unit credit" to "entry age normal".
Effective immediately.
LRB098 07116 EFG 37177 b FISCAL NOTE ACT PENSION IMPACT MAY APPLY NOTE ACT MAY APPLY A BILL FOR HB1277 LRB098 07116 EFG 37177 b AN ACT concerning public employee benefits.
(c) For State fiscal years 2012 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of HB1277 - 2 - LRB098 07116 EFG 37177 b State fiscal year 2045.
(c) For State fiscal years 2012 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of HB1277 Engrossed - 2 - LRB098 07116 EFG 37177 b State fiscal year 2045.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $10,454,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General HB1277 - 3 - LRB098 07116 EFG 37177 b Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $10,454,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General HB1277 Engrossed - 3 - LRB098 07116 EFG 37177 b Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
HB1277 - 4 - LRB098 07116 EFG 37177 b Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%.
HB1277 Engrossed - 4 - LRB098 07116 EFG 37177 b Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State HB1277 - 5 - LRB098 07116 EFG 37177 b fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State HB1277 Engrossed - 5 - LRB098 07116 EFG 37177 b fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
7-13-12.) (40 ILCS 5/14-131) HB1277 - 6 - LRB098 07116 EFG 37177 b Sec.
7-13-12.) (40 ILCS 5/14-131) HB1277 Engrossed - 6 - LRB098 07116 EFG 37177 b Sec.
The Board shall also determine a State contribution rate for each fiscal year, expressed as a percentage of payroll, based on the total required State contribution for that fiscal year (less the amount received by the System from appropriations under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act, if any, for the fiscal year ending on the June 30 immediately preceding the applicable November 15 certification deadline), the estimated payroll (including all forms of HB1277 - 7 - LRB098 07116 EFG 37177 b compensation) for personal services rendered by eligible employees, and the recommendations of the actuary.
The Board shall also determine a State contribution rate for each fiscal year, expressed as a percentage of payroll, based on the total required State contribution for that fiscal year (less the amount received by the System from appropriations under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act, if any, for the fiscal year ending on the June 30 immediately preceding the applicable November 15 certification deadline), the estimated payroll (including all forms of HB1277 Engrossed - 7 - LRB098 07116 EFG 37177 b compensation) for personal services rendered by eligible employees, and the recommendations of the actuary.
(c-1) Notwithstanding subsection (c) of this Section, for fiscal years 2010, 2012, and 2013 only, contributions by the several departments are not required to be made for General HB1277 - 8 - LRB098 07116 EFG 37177 b Revenue Funds payrolls processed by the Comptroller.
(c-1) Notwithstanding subsection (c) of this Section, for fiscal years 2010, 2012, and 2013 only, contributions by the several departments are not required to be made for General HB1277 Engrossed - 8 - LRB098 07116 EFG 37177 b Revenue Funds payrolls processed by the Comptroller.
(e) For State fiscal years 2012 through 2045, the minimum HB1277 - 9 - LRB098 07116 EFG 37177 b contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045.
(e) For State fiscal years 2012 through 2045, the minimum HB1277 Engrossed - 9 - LRB098 07116 EFG 37177 b contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045.
HB1277 - 10 - LRB098 07116 EFG 37177 b 9.8% in FY 1999;
HB1277 Engrossed - 10 - LRB098 07116 EFG 37177 b 9.8% in FY 1999;
Notwithstanding any other provision of this Article, the total required State General Revenue Fund contribution for HB1277 - 11 - LRB098 07116 EFG 37177 b State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 pursuant to Section 14-135.08 and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State General Revenue Fund contribution for HB1277 Engrossed - 11 - LRB098 07116 EFG 37177 b State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 pursuant to Section 14-135.08 and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Section, the HB1277 - 12 - LRB098 07116 EFG 37177 b required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under Section 14-135.08, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act.
Notwithstanding any other provision of this Section, the HB1277 Engrossed - 12 - LRB098 07116 EFG 37177 b required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under Section 14-135.08, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act.
(f) After the submission of all payments for eligible employees from personal services line items in fiscal year 2004 HB1277 - 13 - LRB098 07116 EFG 37177 b have been made, the Comptroller shall provide to the System a certification of the sum of all fiscal year 2004 expenditures for personal services that would have been covered by payments to the System under this Section if the provisions of this amendatory Act of the 93rd General Assembly had not been enacted.
(f) After the submission of all payments for eligible employees from personal services line items in fiscal year 2004 HB1277 Engrossed - 13 - LRB098 07116 EFG 37177 b have been made, the Comptroller shall provide to the System a certification of the sum of all fiscal year 2004 expenditures for personal services that would have been covered by payments to the System under this Section if the provisions of this amendatory Act of the 93rd General Assembly had not been enacted.
HB1277 - 14 - LRB098 07116 EFG 37177 b As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date.
HB1277 Engrossed - 14 - LRB098 07116 EFG 37177 b As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date.
If the amount due is more than the amount received, the difference shall be HB1277 - 15 - LRB098 07116 EFG 37177 b termed the "Fiscal Year 2010 Shortfall" for purposes of this Section, and the Fiscal Year 2010 Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing Appropriation Act.
If the amount due is more than the amount received, the difference shall be HB1277 Engrossed - 15 - LRB098 07116 EFG 37177 b termed the "Fiscal Year 2010 Shortfall" for purposes of this Section, and the Fiscal Year 2010 Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing Appropriation Act.
If the amount due is more than the amount received, the difference shall be termed the "Fiscal Year 2011 Shortfall" for purposes of this Section, and the Fiscal Year 2011 Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing HB1277 - 16 - LRB098 07116 EFG 37177 b Appropriation Act.
If the amount due is more than the amount received, the difference shall be termed the "Fiscal Year 2011 Shortfall" for purposes of this Section, and the Fiscal Year 2011 Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing HB1277 Engrossed - 16 - LRB098 07116 EFG 37177 b Appropriation Act.
HB1277 - 17 - LRB098 07116 EFG 37177 b (Source:
HB1277 Engrossed - 17 - LRB098 07116 EFG 37177 b (Source:
In making these determinations, the required State contribution shall be calculated each year as a HB1277 - 18 - LRB098 07116 EFG 37177 b level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the entry age normal projected unit credit actuarial cost method.
In making these determinations, the required State contribution shall be calculated each year as a HB1277 Engrossed - 18 - LRB098 07116 EFG 37177 b level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the entry age normal projected unit credit actuarial cost method.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $702,514,000 and shall be made from the State Pensions Fund and proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of HB1277 - 19 - LRB098 07116 EFG 37177 b total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $702,514,000 and shall be made from the State Pensions Fund and proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of HB1277 Engrossed - 19 - LRB098 07116 EFG 37177 b total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this HB1277 - 20 - LRB098 07116 EFG 37177 b Article in any future year until the System has reached a funding ratio of at least 90%.
Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this HB1277 Engrossed - 20 - LRB098 07116 EFG 37177 b Article in any future year until the System has reached a funding ratio of at least 90%.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds HB1277 - 21 - LRB098 07116 EFG 37177 b issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds HB1277 Engrossed - 21 - LRB098 07116 EFG 37177 b issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.
The rate of contributions to be made by those municipalities shall be determined annually by the Board on the basis of the actuarial assumptions adopted by the Board and the recommendations of the HB1277 - 22 - LRB098 07116 EFG 37177 b actuary, and shall be expressed as a percentage of salary for each such employee.
The rate of contributions to be made by those municipalities shall be determined annually by the Board on the basis of the actuarial assumptions adopted by the Board and the recommendations of the HB1277 Engrossed - 22 - LRB098 07116 EFG 37177 b actuary, and shall be expressed as a percentage of salary for each such employee.
HB1277 - 23 - LRB098 07116 EFG 37177 b (f) Normal costs under this Section means liability for pensions and other benefits which accrues to the System because of the credits earned for service rendered by the participants during the fiscal year and expenses of administering the System, but shall not include the principal of or any redemption premium or interest on any bonds issued by the Board or any expenses incurred or deposits required in connection therewith.
HB1277 Engrossed - 23 - LRB098 07116 EFG 37177 b (f) Normal costs under this Section means liability for pensions and other benefits which accrues to the System because of the credits earned for service rendered by the participants during the fiscal year and expenses of administering the System, but shall not include the principal of or any redemption premium or interest on any bonds issued by the Board or any expenses incurred or deposits required in connection therewith.
Whenever it determines that a payment is or may be required under this subsection (g), the System shall calculate the HB1277 - 24 - LRB098 07116 EFG 37177 b amount of the payment and bill the employer for that amount.
Whenever it determines that a payment is or may be required under this subsection (g), the System shall calculate the HB1277 Engrossed - 24 - LRB098 07116 EFG 37177 b amount of the payment and bill the employer for that amount.
The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July HB1277 - 25 - LRB098 07116 EFG 37177 b 31, 2006 (the effective date of Public Act 94-1057).
The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July HB1277 Engrossed - 25 - LRB098 07116 EFG 37177 b 31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase resulting HB1277 - 26 - LRB098 07116 EFG 37177 b from (i) a promotion for which the employee moves from one classification to a higher classification under the State Universities Civil Service System, (ii) a promotion in academic rank for a tenured or tenure-track faculty position, or (iii) a promotion that the Illinois Community College Board has recommended in accordance with subsection (k) of this Section.
When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase resulting HB1277 Engrossed - 26 - LRB098 07116 EFG 37177 b from (i) a promotion for which the employee moves from one classification to a higher classification under the State Universities Civil Service System, (ii) a promotion in academic rank for a tenured or tenure-track faculty position, or (iii) a promotion that the Illinois Community College Board has recommended in accordance with subsection (k) of this Section.
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(1) The number of recalculations required by the HB1277 - 27 - LRB098 07116 EFG 37177 b changes made to this Section by Public Act 94-1057 for each employer.
(1) The number of recalculations required by the HB1277 Engrossed - 27 - LRB098 07116 EFG 37177 b changes made to this Section by Public Act 94-1057 for each employer.
HB1277 - 28 - LRB098 07116 EFG 37177 b (l) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:
HB1277 Engrossed - 28 - LRB098 07116 EFG 37177 b (l) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:
(a) The State shall make contributions to the System by means of appropriations from the Common School Fund and other State funds of amounts which, together with other employer contributions, employee contributions, investment income, and HB1277 - 29 - LRB098 07116 EFG 37177 b other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations.
(a) The State shall make contributions to the System by means of appropriations from the Common School Fund and other State funds of amounts which, together with other employer contributions, employee contributions, investment income, and HB1277 Engrossed - 29 - LRB098 07116 EFG 37177 b other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations.
HB1277 - 30 - LRB098 07116 EFG 37177 b On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.
HB1277 Engrossed - 30 - LRB098 07116 EFG 37177 b On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.
HB1277 - 31 - LRB098 07116 EFG 37177 b (b) Through State fiscal year 1995, the State contributions shall be paid to the System in accordance with Section 18-7 of the School Code.
HB1277 Engrossed - 31 - LRB098 07116 EFG 37177 b (b) Through State fiscal year 1995, the State contributions shall be paid to the System in accordance with Section 18-7 of the School Code.
HB1277 - 32 - LRB098 07116 EFG 37177 b (b-2) Allocations from the Common School Fund apportioned to school districts not coming under this System shall not be diminished or affected by the provisions of this Article.
HB1277 Engrossed - 32 - LRB098 07116 EFG 37177 b (b-2) Allocations from the Common School Fund apportioned to school districts not coming under this System shall not be diminished or affected by the provisions of this Article.
10.77% HB1277 - 33 - LRB098 07116 EFG 37177 b in FY 2000;
10.77% HB1277 Engrossed - 33 - LRB098 07116 EFG 37177 b in FY 2000;
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 HB1277 - 34 - LRB098 07116 EFG 37177 b pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 HB1277 Engrossed - 34 - LRB098 07116 EFG 37177 b pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.
A reference in this Article to HB1277 - 35 - LRB098 07116 EFG 37177 b the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
A reference in this Article to HB1277 Engrossed - 35 - LRB098 07116 EFG 37177 b the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year HB1277 - 36 - LRB098 07116 EFG 37177 b 2011, the State is contributing at the rate otherwise required under this Section.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year HB1277 Engrossed - 36 - LRB098 07116 EFG 37177 b 2011, the State is contributing at the rate otherwise required under this Section.
However, with respect to benefits granted under Section 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) HB1277 - 37 - LRB098 07116 EFG 37177 b of Section 16-106, the employer's contribution shall be 12% (rather than 20%) of the member's highest annual salary rate for each year of creditable service granted, and the employer shall also pay the required employee contribution on behalf of the teacher.
However, with respect to benefits granted under Section 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) HB1277 Engrossed - 37 - LRB098 07116 EFG 37177 b of Section 16-106, the employer's contribution shall be 12% (rather than 20%) of the member's highest annual salary rate for each year of creditable service granted, and the employer shall also pay the required employee contribution on behalf of the teacher.
These employer contributions are intended to offset a portion of the cost to the System of the increases in HB1277 - 38 - LRB098 07116 EFG 37177 b retirement benefits resulting from this amendatory Act of 1998.
These employer contributions are intended to offset a portion of the cost to the System of the increases in HB1277 Engrossed - 38 - LRB098 07116 EFG 37177 b retirement benefits resulting from this amendatory Act of 1998.
(f) If the amount of a teacher's salary for any school year HB1277 - 39 - LRB098 07116 EFG 37177 b used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%.
(f) If the amount of a teacher's salary for any school year HB1277 Engrossed - 39 - LRB098 07116 EFG 37177 b used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%.
The bill HB1277 - 40 - LRB098 07116 EFG 37177 b shall specify the calculations used to determine the amount due.
The bill HB1277 Engrossed - 40 - LRB098 07116 EFG 37177 b shall specify the calculations used to determine the amount due.
HB1277 - 41 - LRB098 07116 EFG 37177 b When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.
HB1277 Engrossed - 41 - LRB098 07116 EFG 37177 b When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic HB1277 - 42 - LRB098 07116 EFG 37177 b year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.
When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic HB1277 Engrossed - 42 - LRB098 07116 EFG 37177 b year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.
(1) The number of recalculations required by the HB1277 - 43 - LRB098 07116 EFG 37177 b changes made to this Section by Public Act 94-1057 for each employer.
(1) The number of recalculations required by the HB1277 Engrossed - 43 - LRB098 07116 EFG 37177 b changes made to this Section by Public Act 94-1057 for each employer.
HB1277 - 44 - LRB098 07116 EFG 37177 b (Source:
HB1277 Engrossed - 44 - LRB098 07116 EFG 37177 b (Source:
In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the HB1277 - 45 - LRB098 07116 EFG 37177 b entry age normal projected unit credit actuarial cost method.
In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the HB1277 Engrossed - 45 - LRB098 07116 EFG 37177 b entry age normal projected unit credit actuarial cost method.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $78,832,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond HB1277 - 46 - LRB098 07116 EFG 37177 b proceeds due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $78,832,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond HB1277 Engrossed - 46 - LRB098 07116 EFG 37177 b proceeds due to the issuance of discounted bonds, if applicable.
A reference in this Article to HB1277 - 47 - LRB098 07116 EFG 37177 b the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
A reference in this Article to HB1277 Engrossed - 47 - LRB098 07116 EFG 37177 b the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year HB1277 - 48 - LRB098 07116 EFG 37177 b 2011, the State is contributing at the rate otherwise required under this Section.
In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year HB1277 Engrossed - 48 - LRB098 07116 EFG 37177 b 2011, the State is contributing at the rate otherwise required under this Section.
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Action History

  1. Session Sine Die

  2. Pursuant to Senate Rule 3-9(b) / Referred to Assignments

  3. Rule 2-10 Committee Deadline Established As May 31, 2013

  4. To Subcommittee on Special Issues (EX)

  5. Assigned to Executive

  6. Referred to Assignments

  7. First Reading

  8. Chief Senate Sponsor Sen. William E. Brady

  9. Placed on Calendar Order of First Reading April 16, 2013

  10. Arrive in Senate

  11. Third Reading - Short Debate - Passed 106-000-000

  12. Placed on Calendar Order of 3rd Reading - Short Debate

  13. Second Reading - Short Debate

  14. Placed on Calendar 2nd Reading - Short Debate

  15. Do Pass / Short Debate Personnel and Pensions Committee; 010-000-000

  16. Assigned to Personnel and Pensions Committee

  17. Referred to Rules Committee

  18. First Reading

  19. Filed with the Clerk by Rep. Darlene J. Senger

Sponsors

  • Darlene J. Senger · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • Darlene J. Senger

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 106 Yea · 0 Nay · 12 Other
Party YeaNayPresentNot Voting
Democrat 23002
Unaffiliated 750010
Republican 8000
Total 1060012
% of votes cast 90%0%0%10%
How each member voted (118)
Member Party Vote
Acevedo — Yea
Arroyo — Yea
Beiser — Yea
Bellock — Not Voting
Berrios — Yea
Mautino — Yea
Bost — Yea
Brauer — Yea
Brown — Yea
McAsey — Yea
Durkin — Yea
Golar — Yea
Hurley — Yea
Jakobsson — Yea
Jefferson — Yea
Lang — Yea
Leitch — Yea
McAuliffe — Yea
McSweeney — Yea
Moffitt — Yea
Nekritz — Yea
Phelps — Yea
Pihos — Yea
Burke, Daniel — Yea
Burke, Kelly — Yea
Mitchell, Bill — Yea
Senger — Yea
Sente — Yea
Sullivan — Yea
Mitchell, Christian — Yea
Soto — Yea
Tabares — Yea
Thapedi — Yea
Harris, David — Yea
Tryon — Yea
Turner — Yea
Unes — Yea
Verschoore — Yea
Hernandez — Yea
Wheeler — Yea
Cavaletto — Yea
Cloonen — Yea
Conroy — Yea
Costello — Yea
Cross — Yea
Currie — Yea
D'Amico — Yea
Farnham — Yea
Franks — Yea
Harms — Yea
Hatcher — Yea
Ives — Yea
Kosel — Yea
Williams — Yea
Davis, Monique — Yea
Jones — Yea
Madigan — Yea
Mell — Not Voting
Bradley — Not Voting
Brady — Not Voting
Harris, Greg — Not Voting
Willis — Yea
Yingling — Yea
Zalewski — Not Voting
Demmer — Yea
Drury — Yea
Dunkin — Yea
Flowers — Not Voting
Fortner — Not Voting
Hays — Not Voting
Jackson — Yea
Kay — Yea
Osmond — Yea
Poe — Yea
Pritchard — Yea
Reboletti — Yea
Reis — Yea
Riley — Yea
Roth — Yea
Sacia — Yea
Sandack — Yea
Schmitz — Not Voting
Smiddy — Yea
Sommer — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Camille Y. Lilly Democrat Yea
Elgie R. Sims, Jr. Democrat Yea
Emanuel "Chris" Welch Democrat Yea
Fred Crespo Democrat Yea
Jay Hoffman Democrat Yea
Jehan Gordon-Booth Democrat Not Voting
Julie A. Morrison Democrat Yea
Kelly M. Cassidy Democrat Yea
La Shawn K. Ford Democrat Yea
Laura Fine Democrat Yea
Lawrence "Larry" Walsh, Jr. Democrat Yea
Marcus C. Evans, Jr. Democrat Yea
Martin J. Moylan Democrat Yea
Michelle Mussman Democrat Yea
Natalie A. Manley Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robert F. Martwick Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Not Voting
Stephanie A. Kifowit Democrat Yea
Sue Scherer Democrat Yea
William "Will" Davis Democrat Yea
Brad Halbrook Republican Yea
Charles Meier Republican Yea
Christopher "C.D." Davidsmeyer Republican Yea
Jil Tracy Republican Yea
Joe C. Sosnowski Republican Yea
John M. Cabello Republican Yea
Norine K. Hammond Republican Yea
Wayne A. Rosenthal Republican Yea

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 1277 do?
Amends the Illinois Pension Code. In the current funding provisions of the 5 State-funded retirement systems, changes the actuarial cost method from "projected unit credit" to "entry age normal". Effective immediately.
Who sponsors HB 1277?
HB 1277 is sponsored by Darlene J. Senger.
What is the current status of HB 1277?
This bill died with 98th Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 1277?
Track HB 1277 free on One Click Politics — get push/email alerts when it moves.

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