HB 5488

Abstract

Creates the Pension Stabilization Act. Creates the Pension Stabilization Board and a new Pension Stabilization Fund. Provides for the certification of certain revenues and expenditures in FY2012, and directs certain future gaming and racing revenues and bond savings to be deposited into the Fund. Authorizes the Board to release money from the Fund to the 5 State-funded retirement systems based on their insolvency or unfunded liabilities. Amends the Budget Stabilization Act to repeal provisions relating to the existing (inactive) Pension Stabilization Fund. Amends the Illinois Income Tax Act. Reduces the rate of the tax imposed under the Act upon individuals, trusts, and estates to 4.75% (now, 5%) for taxable years beginning on or after January 1, 2013, and ending prior to January 1, 2015, 3.5% (now, 3.75%) for taxable years beginning on or after January 1, 2015 and ending prior to January 1, 2025, and 3% (now, 3.25%) for taxable years beginning on or after January 1, 2025. Provides that, for taxable years beginning on or after January 1, 2013, the amount of federally taxable retirement and survivor income that may be deducted from income for Illinois income tax purposes does not include retirement or survivor income received by an individual before he or she has attained age 65. Amends the General Obligation Bond Act. Directs the Governor to refund and refinance the outstanding Illinois pension bonds from the bond sale authorized by Public Act 93-2, if he or she determines that the refinancing will produce significant savings. Amends the Illinois Pension Code, the State Pension Funds Continuing Appropriation Act, the Riverboat Gambling Act, the Illinois Horse Racing Act of 1975, and the Video Gaming Act to make corresponding changes. Also makes revisory changes. Effective immediately.