SB 3555

Abstract

Amends the Illinois Pension Code. Shifts the required State contributions under the State Universities and Downstate Teacher retirement systems to the actual employers, beginning in State fiscal year 2016. With respect to the 5 State-funded retirement systems: Provides a new funding formula for State and employer contributions, with a 100% funding goal through 2045 (determined using the projected unit credit actuarial cost method) and a 90% funding goal thereafter. Provides that no additional service credit may be accrued and no automatic increase in a retirement annuity shall be received. Provides that the pensionable salary of an active participant may not exceed that individual's pensionable salary as of the effective date. Provides that State-funded retirement systems shall establish self-directed retirement plans for all active participants and all employees hired on or after the effective date. Provides that all active participants shall have the option of participating in a self-directed retirement plan. Provides that these changes are controlling over any other law. Amends the State Mandates Act to require implementation without reimbursement. Includes a nonacceleration provision.