Tuesday, November 8, 2011

Amendment to SB512 [Other points of interest]

Amendment to SB512 (Nov. 7, 2011) [Other points of interest]:

Pages 6-7 [Tier-Two]:
(c) A member or participant is entitled to a retirement annuity upon written application if he or she has attained age 67 and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. A member or participant who has attained age 62 and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article may elect to receive the lower retirement annuity provided in subsection (d) of this Section.

(d) The retirement annuity of a member or participant who is retiring after attaining age 62 with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 67.

(e) Any retirement annuity or supplemental annuity shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.

Pages 84-85
(40 ILCS 5/9-170.6 new)
Sec. 9-170.6. Employer contributions to the self-managed plan: Beginning in fiscal year 2014, for members electing benefits under paragraph (3) of subsection (a) of Section 9-170.5, an employer contribution shall be made each fiscal year in an amount equal to 6% of total pensionable payroll for the respective employee group.

(40 ILCS 5/9-170.7 new)
Sec. 9-170.7. Maximum self-managed plan participation. By
January 1, 2013, the Fund shall certify its total active participant population. When the number of participants that elect the self-managed plan is equal to 20% of the total active participant population, then no participant may elect the self-managed plan.


Beginning in 2016 and every 3 years thereafter, the Fund shall recertify its total active participant population and the number of participants in the self-managed plan. If the number of participants in the self-managed plan is less than 20% of the recertified total active participant population, then eligible participants may elect to participate in the self-managed plan. However, participants shall be prohibited from electing to participate once the Fund determines that the number of participants in the self-managed plan is equal to 20% of the number of total active participants in the Fund.

Pages 249-50
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
Sec. 16-133. Retirement annuity; amount:
(A)The amount of the retirement annuity shall be (i) in the case of a person who first became a teacher under this Article before July 1, 2005, the larger of the amounts determined under paragraphs (A) and (B) below, or (ii) in the case of a person who first becomes a teacher under this Article on or after July 1, 2005, the amount determined under the applicable provisions of paragraph (B):

(A) An amount consisting of the sum of the following:
(1) An amount that can be provided on an actuarially equivalent basis by the member's accumulated contributions at the time of retirement; and
(2) The sum of (i) the amount that can be provided on an actuarially equivalent basis by the member's accumulated contributions representing service prior to July 1, 1947, and (ii) the amount that can be provided on an actuarially equivalent basis by the amount obtained by multiplying 1.4 times the member's accumulated contributions covering service subsequent to June 30, 1947; and
(3) If there is prior service, 2 times the amount that would have been determined under subparagraph (2) of paragraph (A) above on account of contributions which would have been made during the period of prior service creditable to the member had the System been in operation and had the member made contributions at the contribution rate in effect prior to July 1, 1947.

Beginning on July 1, 2013, for purposes of calculating the sum provided under this paragraph (A), member contributions in excess of the member contribution rates that apply to this benefit and are in effect immediately prior to July 1, 2013 shall not be considered when determining the amount of the member's accumulated contributions under subparagraph (1) or the additional sum based on the member's accumulated contributions under subparagraph (2). This paragraph (A) does not apply to a person who first becomes a teacher under this Article on or after July 1, 2005.

Pages 275-77
For State fiscal years 2014 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount equal to the sum of (i) the contribution determined under Section 16-158.2, plus (ii) 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.

In making the determinations under item (ii) of this subsection (b-3), for State fiscal years 2017 through 2045, the required State contribution shall be calculated each year as a level percentage of revenue provided by the individual income tax, sales tax, and corporate income tax assuming a 2.3% average annual growth rate in these revenues based on the most recent fiscal year's actual revenues as reported by the Commission on Government Forecasting and Accountability over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method.

Notwithstanding any other provision of this Article, State fiscal years 2014 through 2016, the State contribution to the System under item (ii) of this subsection (b-3), as a percentage of State revenue from the individual income tax, sales tax, and corporate income tax shall be increased in equal annual increments so that by State fiscal year 2017, the State is contributing at the rate required under this Section.

For State fiscal years 2014 through 2045, the total State contribution required in each fiscal year under this subsection (b-3) must not be less than 100% of the prior fiscal year's actual or required contribution, whichever is greater. Notwithstanding any other provision of this Article, the total required State contribution for this System for State fiscal year 2013 shall be $2,765,140,669.

Page 314:
Section 99. Effective date. This Act takes effect July 1,
2012.”

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