Bill Status of SB 1208   93rd General Assembly

Short Description:  PEN CD-SERS-INCR RETMT FORMULA

Senate Sponsors
Sen. Don Harmon-Denny Jacobs

Last Action  View All Actions

DateChamber Action
  1/11/2005SenateSession Sine Die

Statutes Amended In Order of Appearance
40 ILCS 5/14-108from Ch. 108 1/2, par. 14-108
40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133

Synopsis As Introduced
Amends the State Employee Article of the Illinois Pension Code. Increases the retirement formula for certain regular coordinated members from 1.67% to 2.0% of final average compensation per year of service. Increases the employee contribution rate for those members from 4% to 5%. Effective immediately.

 Fiscal Note (State Retirement Systems)
 Based on our analysis, as of June 30, 2001, 57,558 active members and 5,032 deferred members would be affected by the change. The increase for active members is estimated to be $624.6 million or 1.03% of payroll and deferred members is estimated to be $39.3 million.

 Pension Note (Pension Laws Commission)
 SB 1208 would increase the accrued liability of the System by an estimated $663.9 million. The contributions required to amortize this increase in accrued liability have not been calculated, but would be substantial. In addition, the increase in normal cost (benefits earned in a year) is expected to be 1.03% of payroll, which would be offset by the 1.03% of salary increase in employee contributions. It should be noted that these cost estimates assume a change in the formula would not change the timing of retirement decisions. If members of SERS start to retire earlier, the costs of SB 1208 would be higher than outlined above.

Actions 
DateChamber Action
  2/20/2003SenateFiled with Secretary by Sen. Don Harmon
  2/20/2003SenateFirst Reading
  2/20/2003SenateReferred to Rules
  2/27/2003SenateAssigned to Insurance & Pensions
  3/12/2003SenateAdded as Chief Co-Sponsor Sen. Denny Jacobs
  3/13/2003SenateDo Pass Insurance & Pensions; 010-000-000
  3/13/2003SenatePlaced on Calendar Order of 2nd Reading March 18, 2003
  3/18/2003SenateFiscal Note Requested by Sen. Bill Brady
  3/24/2003SenateFiscal Note Filed
  4/1/2003SenatePension Note Filed As Introduced
  4/4/2003SenateThird Reading Deadline Extended - Rule 2-10(e) to April 9, 2003.
  7/1/2003SenatePursuant to Senate Rule 3-9(b) / Referred to Rules
  1/11/2005SenateSession Sine Die

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