SB 1763

Abstract

Amends the General Assembly Article of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement annuity and survivor's annuity delayed and reduced or (ii) maintain the current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes and requires recertification of State contributions for fiscal years 2018 and 2019. Establishes a voluntary defined contribution plan for certain eligible Tier 1 participants and repeals provisions concerning the defined contribution plan added by Public Act 98-599, which has been held unconstitutional. Makes conforming changes in the Retirement Systems Reciprocal Act (Article 20 of the Code). Restricts participation in the System to persons who became participants before the effective date. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Effective immediately.