92nd General Assembly
Status of HB0432
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 Full Text  Bill Summary

   30 ILCS 105/14a           from Ch. 127, par. 150a                           
   30 ILCS 105/15a           from Ch. 127, par. 151a                           
   40 ILCS 5/14-108.3                                                          
   40 ILCS 5/16-133.3        from Ch. 108 1/2, par. 16-133.3                   
   40 ILCS 15/1.6 new                                                          

        Amends the State Employee and Downstate Teacher Articles  of  the      
   Pension  Code.   Provides  an  early  retirement incentive program for      
   certain State employees who retire between January 1, 2002 and July 1,      
   2002 (in certain cases, as late as January 1,  2003).    Requires  the      
   Pension  Laws  Commission  to report on the net savings or cost of the      
   program.  Requires the State to  fund  the  program  through  separate      
   contributions  made  in  fiscal  years  2003 through 2009.  Amends the      
   State Pension Funds Continuing Appropriation Act  to  guarantee  those      
   contributions  through  continuing  appropriations.   Amends the State      
   Finance Act to restrict personal service contracts  with  these  early      
   retirees.   Requires the lump sum payment for unused vacation and sick      
   leave to be separate from the final payment of salary and requires the      
   use of specified withholding rates.  Provides that a lump sum  payment      
   payable  to  a person who terminates State service during June of 2002      
   may be paid during July or August of 2002 from either  a  fiscal  year      
   2002  or fiscal year 2003 appropriation.  Provides that in fiscal year      
   2004 the General Assembly shall not fund the vacated positions at more      
   than  85%  of  the  rate  of  compensation  payable  at  the  time  of      
   retirement.  Effective immediately.                                         
          PENSION NOTE (Pension Laws Commission)                               
          Assuming 7,392 members (approximately 35% of those eligible)         
          retire early, it is estimated the accrued liability of SERS          
          would increase by $611.5 million. Required employee contribu-        
          tions are expected to total $41.6 million. Therefore, the in-        
          crease in accrued liability the State would be required to           
          amortize is estimated to be $569.9 million. HB 432 requires          
          the State to contribute $90 million to SERS and $1 million           
          to TRS in FY03 to amortize the increase in accrued liability,        
          and requires the remainder of the accrued liability to be            
          amortized in 6 equal installments, beginning in FY04. The            
          Commission's actuary estimates annual payments to be $105.4          
   JAN-30-2001  H  FILED WITH CLERK                                               
   JAN-30-2001  H  FIRST READING                                                  
   JAN-30-2001  H  REFERRED TO HOUSE RULES COMMITTEE        RULES                 
   FEB-06-2001  H       ASSIGNED TO COMMITTEE               PERS PENSION          
   MAR-01-2001  H                        PENSION NOTE FILED                       
   MAR-01-2001  H                   COMMITTEE               PERS PENSION          
   MAR-16-2001  H  RE-REFERRED TO RULES COMM/RULE 19(A)     RULES         HRUL    
   JAN-07-2003  H  SESSION SINE DIE                                               


 Full Text  Bill Summary