HB 2746

Abstract

Amends the Property Tax Code to impose a 3-year freeze on tax levies by school districts and community college districts. Amends the School Code and the Public Community College Act to make conforming changes. Amends the Illinois Pension Code. In the General Provisions Article, creates a cash balance plan for new hires of the State Universities and Teachers' Retirement Systems and for certain Tier II participants. In the General Assembly, State Employee, State Universities, and Downstate Teacher Articles, increases the retirement age for certain Tier I members and participants. Changes the conditions of eligibility for, and the amount of, automatic annual increases for Tier I retirees. Increases Tier I employee contributions. Limits pensionable salary for Tier I participants and provides that nothing prohibits an employer from providing additional retirement benefits outside the retirement system for participating employees whose compensation exceeds the new salary limitation. Changes the required State contribution to each of the affected retirement systems. Guarantees certain funding levels. In the State Universities and Downstate Teacher Articles, shifts costs to local employers. Makes other changes. Amends the State Finance Act. To the list of standardized items of appropriation, adds "State retirement contribution for annual normal cost" and "State retirement contribution for unfunded accrued liability". Defines those terms. Amends the Governor's Office of Management and Budget Act. Adds those terms to a list of classifications to be used in the preparation of a State budget. Amends the School Code to strengthen the requirements for reimbursement of State mandates on school districts. Includes an inseverability provision. Effective immediately.