Sen. Linda Holmes - Pamela J. Althoff - Mrs. Melinda Bush - Toi W. Hutchinson - Kimberly A. Lightford, Mike Jacobs, Wm. Sam McCann, Dan Kotowski, John G. Mulroe, Thomas Cullerton, Pat McGuire, Bill Cunningham, Michael W. Frerichs, Jennifer Bertino-Tarrant, Julie A. Morrison, Tim Bivins, Gary Forby, Iris Y. Martinez, William E. Brady and Andy Manar
Amends the Budget Stabilization Act. Provides for transfers from the General Revenue Fund to the Pension Stabilization Fund according to a specified schedule beginning in FY 2016 and continuing until FY 2045 or until the retirement funds have achieved a 100% funding ratio, whichever is earlier. Amends the General Assembly, State Employee, State Universities and Downstate Teacher Articles of the Illinois Pension Code. Changes the manner in which the annual required State contribution is calculated so that the affected systems are 100% funded by 2045. Provides that employee contributions to the retirement systems are increased an additional 1% on July 1, 2013 and 2% on July 1, 2014. Provides that the State is contractually obligated to each retirement plan participant and retiree to provide funding to the retirement systems according to the specified amortization schedule beginning in FY 2016 and continuing until FY 2045 or until the retirement funds have achieved a 100% funding ratio, whichever is earlier, in addition to the annual required State contribution certified by the Board for each fiscal year. Provides that each retirement system has the right to bring a mandamus action against the State to compel the State to make any installment of the annual required State contribution certified by the Board and the transfers required under the Budget Stabilization Act. Further provides that if a retirement system shall fail to bring a mandamus action against the State to compel the State to make any required installment, then any participant or retiree may bring such a mandamus action. Effective July 1, 2013.
“Senate Bill 2404 calls for a new state law that guarantees the state will make an actuarially-required contribution to TRS every year. In Illinois, only pension benefits for members are protected as a contractual right by the state constitution. In other states, both pension benefits and state contributions to help fund the benefits are guaranteed as contractual rights for members... [Read about the New York State Teachers’ Retirement System].