summary
Introduced
02/06/2025
02/06/2025
In Committee
02/06/2025
02/06/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Pension Code. Creates the State-Funded Retirement Systems Council to appoint and oversee the Pension Funding Trustee and to monitor and verify State funding to the State-Funded Retirement Systems. Creates the Office of Pension Trustee. Sets forth duties of the Council and Trustee. Provides that the State pledges that the State will not limit or alter certain rights of the Council, the State-Funded Retirement Systems, the Pension Funding Trustee, or the Auditor General under the amendatory Act; alter the method of calculating the minimum required contribution by the State to any State-Funded Retirement System in such a manner as results in a diminution in the contribution amount to a State-Funded Retirement System before the total assets of that System are equal to 100% of the total actuarial liabilities of that System; or use the proceeds of certain income tax surcharges for anything other than certain purposes. Waives sovereign immunity for purposes of the State-Funded Retirement Systems Council. Beginning State Fiscal Year 2026, sets forth a minimum contribution formula for the State-funded retirement systems equal to the sum of the Base Contribution plus the Benefit Change Contribution Amount. Makes conforming and other changes. Provides for transfers from the Budget Stabilization Act from the proceeds of the income tax surcharge under the amendatory Act. Amends the Illinois Income Tax Act. Establishes a surcharge for taxable years 2026 through 2034 for all individuals, trusts, and estates equal to 0.5% of the taxpayer's net income and 0.7% of the net income of all corporations. Makes conforming changes in the Court of Claims Act. Effective immediately.
AI Summary
This bill creates a comprehensive pension funding mechanism for Illinois state-funded retirement systems that aims to improve long-term fiscal stability. The bill establishes a State-Funded Retirement Systems Council to appoint and oversee a Pension Funding Trustee, who will monitor and verify state funding to the state's retirement systems. Beginning in fiscal year 2026, the bill introduces a new minimum contribution formula for state-funded retirement systems that consists of a Base Contribution Amount plus a Benefit Change Contribution Amount. The bill also imposes a temporary income tax surcharge on individuals, trusts, and estates (0.5%) and corporations (0.7%) from 2026 to 2034, with proceeds directed to the Pension Stabilization Fund. The surcharge will be suspended if the Auditor General cannot certify that specific funding and reporting requirements are met. The bill includes detailed provisions for calculating contributions, handling changes in actuarial assumptions, and implementing a gradual ramp-up to fully funding the pension systems by fiscal year 2056. Importantly, the bill includes a pledge from the state not to alter the rights of the Council, retirement systems, Trustee, or Auditor General, and waives sovereign immunity for enforcing these provisions. The goal is to create a more predictable and transparent pension funding mechanism that gradually moves the state's retirement systems toward full funding.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1896&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1896.htm |
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